General Assets Defensive Strategies
A private equity fund investing in privately held European companies that equip armed forces and security services. This page sets out what the fund owns, how holdings are chosen, what is excluded, the risks and the key terms.
What the fund owns
Privately held companies based in Europe that earn a substantial share of their revenue from defence and security customers, across six capability areas.
- Air and space
- Components and systems for aircraft and engines, air and missile defence, satellites and secure communications.
- Maritime
- Naval combat systems, sonar, underwater systems and the protection of ports and subsea infrastructure.
- Land systems
- Components, protection and ammunition supply for armoured vehicles and artillery.
- Electronics and sensors
- Radar, optronics, electronic warfare, and command and control systems.
- Mobility and sustainment
- Airlift, protected vehicles, logistics, maintenance and the supply chains that keep equipment in service.
- Cyber and civil security
- Network defence, encryption, border and critical-infrastructure protection for governments, police and emergency services.
Afterburner section of a Eurojet EJ200 engine. The equipment shown does not indicate holdings of the fund.
From the full universe to a focused portfolio
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Source the companies
We look for privately held European companies and keep those that meet a minimum share of revenue from defence and security customers, to be set in the fund documents.
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Apply the exclusions
Companies that fail the criteria listed below are removed before any financial analysis begins.
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Carry out due diligence
We examine order backlog, contract terms, pricing power, production capacity, debt and management. The price we pay is judged against the full cycle, not the current year.
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Invest and support
A limit on the share of the fund in any one company will be set in the fund documents. We work with management through the holding period and plan the exit from the start.
What the fund will not hold
Investing in defence carries responsibility. These limits will be written into the fund's investment policy and applied without exception.
- Weapons banned by international convention. No company involved in anti-personnel mines, cluster munitions, or biological or chemical weapons.
- Nuclear weapons outside the Non-Proliferation Treaty. No involvement in programmes of states that are not party to the treaty.
- Sanctioned parties. No company subject to EU or UN sanctions, or supplying embargoed destinations.
- Unlicensed exports. Holdings must sell under the export-control regimes of EU and NATO member states.
Read this before the rest
"Defensive" names the sector, not the risk level
This is a private equity fund concentrated in one industry. Capital is committed for many years and cannot be withdrawn on demand. Its value can fall sharply and stay low for long periods. It is not a capital-preservation product.
- Concentration
- The fund holds a limited number of companies in a single sector. A setback at one company can affect the whole fund.
- Political decisions
- Revenue depends on government budgets, procurement choices and export licences, all of which can change with an election or a peace settlement.
- Valuation
- Unlisted companies are valued by estimate, not by a market price. Prices paid in the sector have risen in anticipation of higher spending, and expectations that are not met can lead to large losses.
- Liquidity
- Holdings are unlisted and cannot be sold quickly. The fund is closed-ended: no redemptions are planned before the end of the term on 31 December 2040.
Planned terms
- Fund name
- General Assets Defensive Strategies (working name)
- Sponsor
- General Asset Finance Limited
- Alternative investment fund manager
- To be appointed prior to fund launch
- Asset class
- Private equity, defence and dual-use technologies
- Status
- In preparation
- Legal structure
- Reserved Alternative Investment Fund (SICAV-RAIF), Luxembourg. For well-informed investors only
- Risk class (SRI)
- To be confirmed
- Recommended horizon
- Until the end of the fund term (2040)
- Minimum investment commitment
- EUR 250,000
- Ongoing costs
- 2.3% p.a. (to confirm): 2.0% management fee on commitments, plus about 0.3% fund expenses. Carried interest of 20% above an 8% p.a. preferred return, charged separately
- Distributions
- Distributing. Money from company sales is paid out after investors get their capital back, an 8% p.a. preferred return, and the manager's 20% carried interest. Payouts are expected mainly from years 5 to 12 and will be irregular. Some proceeds may be reinvested during the investment period. Payouts may come as shares after a stock market listing
- Fund term and redemption
- Closed-ended. Runs until 31 December 2040, and the manager can extend it by up to 2 × 1 year. No redemptions during the term
These are planned terms for a fund that has not launched. They may change, and only the final offering documents are binding.
Read before you invest
The fund's offering documents and annual reports will be available free of charge from General Asset Finance Limited once the fund is launched. They are the legally binding description of the fund and take precedence over any summary on this website.
Until then, please contact us with questions.
Important information
The fund is in preparation and is not open for subscription. Once launched, it will be reserved for well-informed investors within the meaning of Luxembourg law, with a minimum commitment of EUR 250,000, and may not be offered or sold in any jurisdiction where such an offer is unlawful. Nothing on this page is a personal recommendation. If you are unsure whether an investment is suitable for you, seek independent financial advice.
Questions about the fund?
The fund is in preparation and not yet open for investment. We are glad to answer questions about the strategy and the planned terms.
Photo credit
EJ200 engine: Julian Herzog, CC BY 4.0, via Wikimedia Commons, resized, cropped and darkened. Its use does not imply endorsement by any armed force, government or manufacturer.