Scandinavian banks Svenska Handelsbanken and Danske Bank have both launched new equity funds focused on defence and security, joining a growing wave of Nordic institutions capitalising on Europe’s surge in military spending and infrastructure resilience, according to Bloomberg.

Handelsbanken’s Infrastructure and Preparedness Fund, managed by Caroline Mebius, will target companies strengthening energy, communication, and security networks. “Strongly increased defence budgets and the growing need to protect information, networks and national infrastructure linked to security are key drivers within one of the fund’s investment themes,” Mebius said.

Copenhagen-based Danske Bank has introduced the Danske Invest Defence & Security Fund, which will invest around 85% of its assets in defence companies and 15% in security-related technology firms across Europe and North America.

Defence and security are “geopolitical themes that will remain in focus for many years and offer attractive long-term potential,” said Thomas Otbo, Chief Investment Officer at Danske Bank Asset Management.

The funds enter a competitive Nordic market, with Swedbank Robur launching its own defence fund last month and SEB announcing a similar vehicle in July following the relaxation of its policies on investing in NATO-linked arms manufacturers.

The move underscores a broader European shift towards investment strategies aligned with defence, cybersecurity, and critical infrastructure, as governments across the region boost budgets to meet NATO targets and reduce reliance on imported technology.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.