French finance companies launch European defence investment fund

By Sudip Kar-Gupta

BRUSSELS (Reuters) -Four major French financial companies launched on Monday a new fund focusing on European security and defence, as investors tap into Europe's race to re-arm itself in light of the Russia-Ukraine war and other global conflicts.

The Tikehau Defense and Security fund, with an initial commitment of 150 million euros ($173.4 million), is being launched by Tikehau Capital, Societe Generale Assurances, CNP Assurances and CARAC Group.

Tikehau Capital, SocGen, CNP and CARAC said the fund had the support of the French ministry of defence.

Last week European foreign ministers said they were ready to take tougher action against Russia, and the European Union has earmarked up to 800 billion euros for defence through to 2030.

In March, Belgium's state-owned financial firm Belfius had also said it would invest in defence companies headquartered in NATO countries.

"As partner and shareholder of Tikehau Capital since 2011, taking part in the launch of this fund dedicated to defense and security seemed natural to us," said Michel Andignac, the chief executive of CARAC.

"It will enable us to step up our own investments in companies supporting the sovereignty and strategic autonomy of France and Europe."

($1=0.8653 euros)

(Reporting by Sudip Kar-Gupta, Editing by Clarence Fernandez)