EIF commits EUR 30 million to Sienna Hephaistos Private Investments, the first European private credit fund dedicated to the defence industry, under the InvestEU Defence Equity[...]

• The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, has committed a cornerstone investment of EUR 30 million at the first closing of Sienna Hephaistos Private Investments S.C.A. SICAV-RAIF (the Fund), as part of the InvestEU Defence Equity Facility (DEF).
• The Fund, managed by Sienna Investment Manager, is the first private credit vehicle in Europe exclusively dedicated to providing debt financing for SMEs and midcaps functional for the defence sector. It forms part of Sienna's overall strategy focused on defence industry financing.
• The transaction aligns with the EU's objective of enhancing Europe's security. The Fund specifically facilitates timely access to non-dilutive financing for key suppliers within the European defence value chain.

In the wake of the war in Ukraine and persistent geopolitical tensions, Europe faces an urgent need to strengthen its security and defence capabilities. These challenges have exposed structural weaknesses, particularly within the defence supply chain, where many specialised SMEs and small midcaps, often family-owned, play a critical role by supplying customised components and technologies. Although these companies play a critical role, they often face challenges in obtaining prompt supplementary funding required to expand production during periods of rapidly rising demand for their products.

Sienna Hephaistos Private Investments was established to address this financing gap. By offering tailored credit solutions, the Fund intends to support companies in expanding production capacity, increasing inventories, and pursuing consolidation. The goal is to mitigate supply chain constraints and contribute to Europe's strategic autonomy in the defence sector.

The Fund has successfully completed its first closing, with a target size of EUR 500 million. It is expected to support 25-30 companies across the European defence industrial and technological base, particularly in the supply chain where SMEs and midcaps play a critical role.

The EIF commitment of EUR 30 million, made under the InvestEU Defence Equity Facility (DEF), anchors this first closing. The DEF is a mandate designed to mobilise private capital in support of Europe's security and defence, and this investment marks a milestone as the first private credit fund backed under the facility. By filling a structural financing gap, the Fund will help critical suppliers scale up production, strengthen inventories, and reinforce Europe's strategic autonomy.

Andrius Kubilius, Commissioner for Defence and Space: "Improving access to finance for defence SMEs and midcaps is a priority for the European Commission as it is key to enhance our defence readiness. Our support to the creation of Sienna Hephaistos Private Investment will expand financing opportunities, in the EU, for European companies developing critical defence technologies throughout their development cycle. This investment will contribute to support innovation, address supply chain bottlenecks and facilitate defence industrial ramp-up."

Marjut Falkstedt, Chief Executive of the EIF, said: "With backing from the InvestEU fund, we are happy to support this new fund which will ensure that ambitious industrial and tech companies in the field of defence get the non-dilutive financing they need to scale and prosper, achieving real impact in terms of European defence capabilities and our strategic autonomy alike."

Ambroise Fayolle, Vice-President of the European Investment Bank, added: "Contributing to the European Union's security and defence is one of the priorities of the EIB Group. Thanks to this fund, we will be able to finance specifically companies critical to Europe's security and defence value chain, together with other partners and investors"

Finally, Paul de Leusse, Chairman of Sienna Investment Managers, emphasised the importance of investor backing for this new strategy: "The strong support of the European Investment Fund to the Sienna Hephaistos fund strategy enables us to launch our investment strategy, with an ambitious target of raising at least EUR 500 million 1 billion in support to this fast-moving sector.The EIF's commitment, alongside that of other investors, is a strong vote of confidence in the management team that spearheaded this initiative over the past two years. It shows that all financial players are mobilising and renewing their support for the redeployment of the European defence industry, particularly its subcontracting chain. Private debt meets a genuine requirement among companies, supplementing the financing provided by banks and capital investments."

Background information

About the Fund

Sienna Hephaistos Private Investments is structured as a Luxembourg SCA SICAV-RAIF. Named in reference to Hephaestus, the Greek god of blacksmiths, it provides private debt financing to SMEs and small midcaps across the European defence value chain, addressing critical supply chain bottlenecks and supporting industry growth in a context of rising European defence spending. It aims to raise between at least EUR 500m from European investors by the end of 2026.

About Sienna Investment Managers

Sienna Investment Managers (Sienna IM) is a multi-expertise pan-European asset manager of the publicly traded investment holding company Groupe Bruxelles Lambert (GBL). With a team of around 300 professionals, Sienna IM operates in Paris, Luxembourg, Milan, London, Hamburg, Frankfurt, Madrid, Amsterdam and Seoul. Spanning listed and private assets, Sienna IM builds bespoke and innovative solutions for its clients, with purpose. As of end of June 2025, the Group oversees more than €40 billion under management, of which over 90% (AuM eligible under SFDR perimeter) are classified article 8 or 9. Through its French subsidiary, Sienna AM France, the group has developed deep expertise in thematic private credit strategies, including SME financing, energy transition, and defence.

About the EIF and InvestEU

The European Investment Fund (EIF) is part of the European Investment Bank Group (EIBG). Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them access finance. Under the InvestEU Programme, EIF implements several mandates on behalf of the European Commission, including the Defence Equity Facility funded by the European Defence Fund (EDF), designed to strengthen the European defence technological and industrial base.

Press contact

Andrea Morawski, [email protected], tel.: +352 43 79 83427 / Mobile: +352 691 284 349
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