On the occasion of Eurosatory 2026, Elevation Capital Partners is publishing a sectoral study conducted by the IAC firm, “Understanding, financing and supporting Defense SMEs”. The first independent estimate of the private financing needs of the Industrial and Technological Defense Base (BITD), the study estimates the equity needs of SMEs in the sector at between 4 and 6 billion euros by 2030.
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An accelerating BITD, four concomitant needs
Since 2022, BITD’s revenues have increased by +13% per year on average (compared to +6% over 2017-2021), driven by the increase in national orders and exports. The consolidated order book is expected to increase by more than 17 billion euros by 2030, while the French defense budget will increase from 47 to 75 billion euros over the period, supplemented by the “ReArm Europe” plan of 800 billion euros across the board. European.
The study identifies four concomitant needs for SMEs: modernize an aging industrial tool after two decades of underinvestment, absorb the growth in production volumes, invest in new capabilities (drones, anti-drones, cyber, on-board AI, advanced sensors) and prepare for transfer – more than 40% of managers are considering a sale within the five The DGA also lists 350 SMEs deemed “non-substitutable”.
Private equity as a complementary lever
Bpifrance, Definvest and Caisse des Dépôts are mobilizing significant resources, but considered insufficient to cover all needs. The DGA and the Ministry of the Armed Forces are calling for a structural expansion of the private investor base. The study highlights four characteristics of investment capital adapted to BITD SMEs: a long horizon (5 to 10 years) consistent with industrial cycles, a capacity for operational support, compatibility with the constraints of sovereignty and secrecy, and the possibility of mobilizing French capital for the service of French companies.
BITD SMEs represent nearly 220,000 direct and indirect jobs, with a multiplier effect estimated at 2-3 on indirect employment, and concentrate critical know-how which takes a decade to reconstitute once lost.
Benjamin Cohen, Managing Partner and co-founder of Elevation Capital Partners
“France has a cutting-edge defense industry. Private capital has a key role to play in enabling BITD SMEs to participate in strengthening our industrial capacities, continuing investment in R&D and consolidating a sector with strong development potential and a diffuse fabric. HAS”
À propos d’Elevation Capital Partners
Founded in 2015 and based in Paris, Elevation Capital Partners is the management company approved by the AMF under number GP15000006 of the Elvest Group. With 1 billion euros in assets raised (as of 05/30/2026), it deploys 3 distinct investment strategies: Private Equity (investments in unlisted companies following generalist or thematic approaches), Fund of funds (investments in a diversified portfolio of primary funds and international secondaries) and Real Estate (acquisitions of physical real estate assets). A committed partner alongside entrepreneurs, Elevation Capital Partners supports them in achieving their ambitions.
À about IAC
Founded in 1982, IAC is a strategic consulting firm recognized for its technical and operational approach. IAC supports manufacturers across the entire value chain, from strategic thinking to implementation, in sectors with high technological requirements such as aerospace, defense, automotive, rail or health.
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