EIFO and Danica Invest in European Mega Fund Focused on Defence Technology

Europe is rearming at pace, and new technologies such as artificial intelligence, drones, and satellites are becoming increasingly critical to Europe’s ability to protect itself and its critical infrastructure.  

However, many European defence companies lack the capital required to move from development to large-scale production and international growth. 

To address this challenge, EIFO and Danica are investing EUR 66,7 million and EUR 50 million, respectively, in the European defence fund DTCP Defence Fund I. The fund focuses on growth-stage European companies developing software and technologies for areas including cybersecurity, drones, satellites, secure communications, and surveillance. Many of these technologies are expected to have both military and civilian applications. 

As a result of the investment, DTCP will establish a new Nordic headquarters in Copenhagen, bringing international growth capital, expertise and networks closer to Danish companies and research institutions. 

The investment is intended to strengthen Denmark’s role in Europe’s growing defence ecosystem and, ideally, help position Denmark as a hub for defence technology. 

The EUR 66,7 million commitment is EIFO’s largest defence investment to date. 

The investment is Danica’s largest defence investment in unlisted companies to date. Danica sees the investment as an opportunity to generate attractive, responsible returns for its pension customers while also contributing to the development of technologies that will strengthen Europe’s security, competitiveness, and resilience. 

“Defence technology is a market with strong structural growth driven by the rearmament of Europe and NATO countries, creating attractive return opportunities for our customers. At the same time, the investment supports important societal needs for enhanced security, growth, and resilience in Denmark and across Europe. The fund combines deep expertise in technology, defence, and growth-stage investing, giving it a strong platform to unlock investment potential for the benefit of both our customers and society,” said Mads Kaagaard, CEO of Danica. 

Raised EUR 455 million 

The investments from EIFO and Danica are part of a first close in which DTCP has raised EUR 455 million. Other investors include Porsche, Deutsche Telekom and the state-owned Estonian venture capital fund manager SmartCap. 

At least 75 pct. of the fund’s investments will be made in Europe, while the remaining capital may be invested in other NATO member states and close allies where their technologies are strategically relevant to European defence, interoperability or critical supply chains. The fund is expected to build a portfolio of 20 to 25 companies across areas including software, advanced hardware, autonomous systems, cybersecurity, critical infrastructure, and advanced manufacturing. 

Thomas Preuß, Managing Partner and Chief Investment Officer of DTCP, welcomes the investment.  

“EIFO and Danica are important local partners, and the opening of DTCP’s Copenhagen office in 2027 demonstrates our long-term commitment to the region. Together, these links will help build stronger European value chains and serve as a bridge between the Danish and German defence technology ecosystems,” says Thomas Preuß. 

DTCP expects to open its new office in Copenhagen during the first half of 2027.