Feature – EMEA: Defence sector opens new frontier for levfin

Driven by rising military budgets and geopolitical tensions, Europe’s defence sector is attracting growing interest from private equity firms and credit investors, gradually narrowing the gap with the US. Players such as Sienna Investment Managers exemplify this trend, rolling out dedicated strategies to finance defence SMEs, supported by improved earnings visibility and a loosening of ESG constraints. Still in a build-out phase, Europe’s defence debt market is expected to gain steady momentum over the coming years.

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