Tikehau Capital, Société Générale Assurances, CNP Assurances and CARAC Group Join Forces to Launch a Private Equity Fund Dedicated to European Defense and Security, Available Through Life Insuranc

Tikehau Capital, in partnership with Société Générale Assurances, CNP Assurances, and CARAC Group, is launching a €150 million private equity fund, Tikehau Défense et Sécurité (TDS), focused on European defense, cybersecurity, and security sectors. The Article 8 fund, available as unit-linked products in the insurers' policies from September 2025, aims to support European industrial and technological capabilities and will invest in primary, secondary, or co-investments, and to a lesser extent private debt, in European companies. Initially exclusive to the three partner insurers for one year, the fund will later be accessible to other insurers and professional investors, offering individual policyholders exposure to strategic sectors while targeting attractive performance.

Analysis

Tikehau Capital (Paris:TKO), in collaboration with leading insurers Société Générale Assurances, CNP Assurances, and CARAC Group, has announced the launch of Tikehau Défense et Sécurité (TDS), an innovative private equity fund with an initial commitment of €150 million, dedicated to the strategic sectors of defense, cybersecurity, and European security. This Article 8 fund, structured mainly around Tikehau Capital's private equity strategies, aims to bolster European industrial and technological capabilities by investing in primary, secondary, or co-investment opportunities, and to a lesser extent, private debt in European companies, with a particular focus on entities with dual civilian and military applications enhancing their resilience. Available from September 2025 as unit-linked products within the partner insurers' policies—initially exclusively for one year until September 2026 before opening to other insurers and professional investors—the fund democratizes access to strategies previously reserved for institutional clients. The TDS fund, compliant with ELTIF 2.0 regulations and featuring an "evergreen" 99-year structure with bi-weekly subscription or redemption windows, builds upon Tikehau's established expertise, including a dedicated 30-professional team managing a portfolio in these sectors since 2021, and over €1.5 billion previously raised in similar unit-linked products. This initiative, supported by a strongly positive sentiment score of 0.8, aligns with key investment themes including Private Markets, Infrastructure & Defense, and Cybersecurity, reflecting Tikehau Capital's AUM of €50.6 billion as of March 31, 2025.

Key Decisions for Investors

• Investors in Tikehau Capital (TKO) should view this fund launch positively as it may drive Assets Under Management growth and fee-related earnings, reinforcing its leadership in democratizing private assets and its strategic sector expertise; ongoing monitoring of the fund's capital deployment and performance metrics will be crucial.
• Consider this fund as a potential, albeit initially restricted, access point for long-term exposure to the European defense, security, and cybersecurity sectors, which are experiencing significant tailwinds due to the current geopolitical landscape and sustained technological advancements.
• Eligible retail investors, through the partner insurers, could explore TDS for portfolio diversification into unlisted assets and to support strategic European industries, while carefully assessing the inherent illiquidity, long-term commitment, and specific risks associated with private equity and the defense sector, notwithstanding its 'evergreen' structure and Article 8 classification.