European Commission - Press releaseThe European Commission and the European Investment Fund join forcesto boost investment in defence innovation through the Defence EquityFacilityBrussels, 12 January 2024The European Commission and the European Investment Fund (EIF) have joined forces to step uptheir support to EU's defence and security through the launch of the Defence Equity Facility.The initiative, consisting of €100 million from the European Defence Fund and an additional €75million from the European Investment Fund, will significantly expand EIF's investment capacity tosupport, in the next four years, private equity and venture capital funds with strategies coveringtechnologies relevant to defence.This €175 million initiative is expected to attract additional private investments in the funds itsupports, thereby mobilising, in total, circa. €500 million in support of European companies.The Defence Equity Facility aims to stimulate the development of an ecosystem of private fundsinvesting in defence innovation. The initiative will focus on technologies with dual-use potentialencompassing both civilian and defence applications, to further support the EU's security, in line withInvestEU's objectives.This new funding opportunity will be accompanied by capacity building activities to supportmanagers in the development and management of their funds.This initiative strengthens the cooperation between the Commission and the EIF in support of theaerospace and defence ecosystem, initiated with the launch of CASSINI Fund in January 2022 tobolster investments in space companies.The new Defence Equity Facility is in full alignment with the December 2023 European Council callfor enhancing the EIB Group support of European security and defence, building on the StrategicEuropean Security Initiative launched in 2022 and updated in June 2023.For More InformationThe European Investment Fund (EIF) is part of the European Investment Bank Group. Its centralmission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping themto access finance. The EIF designs and develops venture and growth capital, guarantees andmicrofinance instruments which specifically target this market segment. In this role, the EIF fostersEU objectives in support of innovation, research and development, entrepreneurship, growth andemployment.The European Defence Fund (EDF) - implemented by the European Commission - supportscooperative defence research and development projects. The fund aims to strengthen thecompetitiveness of the European defence industrial base. €8 billion from the EU budget is dedicatedto the European Defence Fund for 2021-2027.As part of the EDF, the EU Defence Innovation Scheme (EUDIS) provides funding and supportmeasures aiming to lower entry barriers into the defence domain for smaller or non-traditionalmarket players and accompany innovators throughout the development cycle.The InvestEU programme provides the European Union with crucial long-term funding byleveraging substantial private and public funds in support of a sustainable recovery. It also helpsmobilise private investments for EU policy priorities like the European Green Deal and the digitaltransition. The InvestEU programme brings together under one roof the multitude of EU financialinstruments currently available to support investment in the European Union, making funding forinvestment projects in Europe simpler, more efficient and more flexible. The programme has threecomponents: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. TheInvestEU Fund is implemented through financial partners that will invest in projects using the EUbudget guarantee of €26.2 billion. The entire budget guarantee will back the projects of theimplementing partners, increasing their risk-bearing capacity and thus mobilising at least
