Key Takeaways
- Sector: Aerospace & Defense.
- Geography: Spain.
Analysis
The European Investment Fund (EIF) has agreed a €40 million commitment to the new Nazca vehicle targeting the aerospace and defence supply chain. The investment supports Nazca Capital's fundraising for Nazca Aeroespacial y Defensa INNVIERTE I FCR, a vehicle aiming for a €600 million target size to back companies building dual‑use (civil and defence) technologies.
The endorsement from the European Investment Fund is complemented by an existing commitment from CDTI Innovación. The operation is structured under the EU’s InvestEU programme and specifically uses the InvestEU Defense Equity Facility, a mechanism designed to channel risk capital into strategic defence and dual‑use ventures across the bloc.
The transaction was formalised at a signing in Madrid attended by Marco Marrone, Chief Investment Officer at the EIF; Teresa Riesgo, Secretary General for Innovation and chair of Innvierte; and Carlos Carbó, chairman of Nazca Capital. EIF said the allocation will help scale firms with critical technologies, from sensors and secure communications to industrial avionics and simulation systems.
From a market perspective, the fund arrives at a time of elevated public and private interest in defence supply‑chain resilience. The EIB Group has set security and defence as a cross‑cutting public policy priority, aiming to assign roughly 3.5% of its planned financing for 2025—around €3.5 billion—to related projects. Parallel programmes such as TechEU target mobilising large amounts of capital for deep tech innovation across Europe.
For Nazca, the new fund represents an opportunity to channel growth capital into strategically important mid‑cap businesses. Nazca, with about 25 years of deal experience and more than 110 transactions, runs multiple strategies including small‑cap and mid‑market buyouts; the aerospace and defence vehicle is its sector‑focused arm and is currently in the market for investors.
The sponsorship by EIF and CDTI strengthens public‑private alignment: CDTI’s Innvierte initiative has invested in dozens of technology funds and co‑invested directly alongside private managers. To date CDTI Innovación has channelled significant commitments through Innvierte vehicles and co‑investment lines to support Spain’s technology ecosystem.
Strategically, the fund is pitched at improving Europe’s technological autonomy. By targeting dual‑use companies that combine civil and defence applications, the vehicle aims to reduce dependency on non‑EU suppliers while creating exportable industrial platforms. Investors will be watching exits in software‑enabled systems, avionics subsystems and cybersecurity for industrial control systems—segments where consolidation and scale can drive value.
Looking ahead, the EIF commitment is likely to encourage other institutional participants to consider the fund. If Nazca reaches its €600 million goal, it would become one of Spain’s largest sector‑specific private equity vehicles, potentially setting a benchmark for further defence‑oriented funds in Europe as policymakers press for resilient, sovereign industrial capabilities.