EIF invests €40 million in Nazca’s aerospace and defence fund in Spain

Madrid: The European Investment Fund (EIF), the arm of the EIB Group specialising in equity investments in small and medium-sized enterprises (SMEs) and mid-caps, is investing €40 million in the Nazca Aeroespacial y Defensa INNVIERTE I FCR fund managed by Nazca Capital. This adds to CDTI’s investment in the fund, which seeks to invest in innovative companies developing dual-use (civil and defence) solutions. CDTI is a public entity, under the Spanish ministry of Science, Innovation and Universities promoting innovation and technological development of Spanish companies.

Nazca Aeroespacial y Defensa will drive modernisation, growth and technological autonomy in the aerospace, defence, security and dual-use technology sectors in Spain and Europe. Its investment philosophy focuses on identifying strategic companies with strong technological or industrial potential that need capital, professional management and scale to speed up their development and expand nationally and internationally. With a target size of €600 million, it is one of Spain’s largest private equity funds specialising in the aerospace and defence sector.

The collaboration between the EIF and Nazca Capital has been formalised at a signing ceremony in Madrid, attended by CDTI Innovación, Marco the Chief Investment Officer of the EIF Marco Marrone, the Spanish Secretary General for Innovation and President of Innvierte Teresa Riesgo, and the Managing Director of Nazca Capital Carlos Carbó.

EIF Chief Investment Officer Marco Marrone said: “With this investment, the EIF is strengthening ties with Nazca and CDTI to drive innovation and advance the development of cutting-edge technologies for civil and defence applications. This collaboration will strengthen Europe’s aerospace and defence industry, bolstering the European Union’s competitiveness and strategic autonomy.”

Managing Director of Nazca Carlos Carbó said: “Backed by CDTI and the European Investment Fund, the Nazca Aeroespacial y Defensa Innvierte I fund is poised to become a key instrument for channelling investment into companies that enhance critical capabilities, drive innovation and advance industrial consolidation within an ecosystem that is increasingly vital to Europe’s strategic sovereignty and competitiveness.”

The EIF investment supports the EIB Group’s cross-cutting public policy goal of strengthening Europe’s security and defence industry, while advancing its strategic priority of accelerating digitalisation and technological innovation. The operation also contributes to the EIB Group’s TechEU programme, designed to accelerate innovation in the European Union by mobilising €250 billion in investment for startups, scaleups and innovative companies across Europe by 2027. This investment is backed by the European Union’s InvestEU programme through its Defence Equity Facility.

The EIB Group and support for European security and defence

Since 2024, the EIB Group has significantly stepped up its support to increase European security and defence capabilities. This area is now a permanent cross-cutting public policy goal for the Group and one of its eight strategic priorities for 2024-2027.

The Group has updated its lending policy to broaden the eligibility criteria and the range of security and defence projects it can finance. It has also set up a Security and Defence Office to ensure a rapid and effective response to project proposals.

The EIB Group aims to allocate 3.5% of its total planned financing for 2025 (about €3.5 billion) to security and defence projects.

For more information on EIB support for the European security and defence sector, click here.

The EIF is part of the EIB Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the Member States, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

An initiative of CDTI Innovación, Innvierte is part of the Spanish strategy for science, technology and innovation 2021-2027, adopted by decision of the Council of Ministers. The programme aims to promote business innovation by supporting venture capital investment in technology-based or innovative companies. To date, CDTI Innovación, through Innvierte Economía Sostenible SICC SME SA, has committed €2.898 billion in 65 investment vehicles that have invested in more than 636 companies. It has also invested €761 million in 199 companies through direct co-investment.

The Centre for the Development of Technology and Innovation is the state-owned innovation agency under the Spanish Ministry of Science, Innovation and Universities. Its purpose is to promote technological innovation in the business sector. CDTI’s mission is to help Spanish businesses create scientific and technical knowledge and convert this into globally competitive, sustainable and inclusive growth. In 2024, as part of a new strategic plan, CDTI provided more than €2.3 billion of support to Spanish companies and startups.

Nazca is a private equity fund management firm specialising in investments in unlisted Spanish family-owned businesses. It has 25 years of experience and has closed over 110 transactions. Nazca currently manages three distinct investment strategies: investments below €30 million, channelled through its sixth fund, Nazca Small Caps II; investments between €30 million and €150 million, channelled through its Nazca Opportunities platform, which pools investments in various family offices; and aerospace and defence investments through its Nazca Aeroespacial y Defensa INNVIERTE I FCR fund, which is currently in the fundraising phase with a target size of €600 million.