DTCP has become the latest investment manager to attract Danish pension and state-backed capital to a defence-focused fund, as Nordic institutional investors increase their exposure to European defence and security amid rising demand for capital to develop the region’s defence capabilities.
The German investment manager announced the first close of DTCP Defence Fund I on 24 September, securing €455m in commitments. Investors include Denmark’s Export and Investment Fund (EIFO), the country’s national development and investment bank, pension provider Danica, Deutsche Telekom, Porsche SE and Estonia’s SmartCap.
EIFO and Danica have committed DKK500m and DKK375m, respectively.
The fund targets early-growth and growth-stage companies developing technologies including artificial intelligence, autonomous systems, cyber defence, secure communications and space technology.
DTCP said European defence companies face a shortage of risk capital to move technologies from development into large-scale production and international growth. The fund is intended to help address this gap while supporting the development of Europe’s technological sovereignty and reducing reliance on non-European technology and supply chains.
Thomas Preuss, DTCP’s chief investment officer, said: “The fund addresses a critical need in Europe: accelerating the development and scaling Europe’s own strategic capabilities. This requires not only significantly more European capital, but also investors who understand how to identify, support and scale mission-critical technology companies.”
The fund has already invested in Norwegian defence technology company Six Robotics and UK-based Kraken Technology Group, with a third investment underway. At least 75% of the fund’s investments will be in Europe, with the remainder available for NATO members and close allies where investments are strategically relevant.
DTCP expects the fund’s final close in the first quarter of 2027. It will also open its Nordic headquarters in Copenhagen in the first half of 2027, with the firm citing the city’s proximity to the Baltic region and its position as a hub for protecting critical European assets.
The announcement follows the launch of ETNA Fund I in December 2025, when PensionDanmark, AP Pension and AkademikerPension committed a combined €220m to a Danish-German fund targeting small and medium-sized European defence companies. PensionDanmark committed €100m, AP Pension €70m and AkademikerPension €50m.
PensionDanmark said the investment reflected the need for European rearmament while giving pension investors access to companies positioned to benefit from increased defence spending.
Elsewhere in the region, Swedish pension provider KPA Pension announced in November 2025 that it would allow investments in the defence industry from January 2026, having previously excluded the sector. KPA cited geopolitical uncertainty and the need to strengthen defence and civil preparedness.
Controversial weapons, including nuclear weapons, anti-personnel mines and biological weapons, remain excluded.
