Capital Surge in European Defence Faces Outdated Procurement Systems

Capital is flowing into European defence at a scale and speed that would have been unthinkable five years ago.

Governments are raising spending targets, private investors that once avoided the sector are moving in, and a new generation of defence tech companies is attracting venture and private equity funding across the continent.

But the system through which that capital must travel was built for a different world.

Procurement systems were designed for an era of relative geopolitical stability, when defence was largely a government monopoly, optimising for cost over speed.

For companies, investors, and their advisers, success hinges on understanding the new financial and...