Tikehau Capital Sees Increased LP Interest in European Defense, Faces Liquidity Concerns
Tikehau Capital's CIO, Emmanuel Laillier, reported a surge in interest from limited partners in European defense investments following the Ukraine invasion, despite low competition and ongoing liquidity concerns. The firm is navigating regulatory complexities surrounding foreign direct investment in Europe while achieving record investment activity in 2025, including raising €1 billion for its Egis continuation fund. While optimistic about 2026, Tikehau acknowledges the persistent geopolitical risks and inflationary pressures affecting the market.
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Tikehau Capital's CIO of private equity, Emmanuel Laillier, noted growing interest from limited partners (LPs) in European defense investments post-Ukraine invasion, although competition remains low. The firm is engaging with more potential investors, who are cautious regarding liquidity and exit strategies for defense assets.
Regulatory complexities surrounding foreign direct investment (FDI) in Europe, including country-specific reviews, add to the uncertainty for buyers. In 2025, Tikehau experienced record investment activity, including deals in Spain and Italy, while also raising €1 billion for its Egis continuation fund. The firm is optimistic for 2026 amid economic adjustments but acknowledges ongoing geopolitical risks and inflationary pressures.
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