The surge in public investments and initiatives in the defense sector is driving the growth of Hyperion Fund, the venture capital fund led by Pablo Casado, which is reaching its investment targets in defense companies ahead of schedule.
Earlier this year, Hyperion raised €150 million, achieving the target size for taking minority stakes in defense companies, as well as in aerospace and artificial intelligence industries. According to Casado, they have already analyzed more than 300 companies across various sectors and have invested 40% of the fund, allocating €100 million to co-investment operations in companies such as Gestair and Pangea Aerospace, among others.
The strong geopolitical context and the new funds expected to be released in the coming years have accelerated Hyperion’s plans. The fund therefore plans to launch a second €500 million vehicle in 2026, in addition to the current fund, with the aim of participating in the strategic and industrial cohesion expected in Europe. “We already have great opportunities in Europe,” Casado explained, referring to Europe’s intention to raise defense spending to 5%, which would triple the current figure to around €1 trillion.
At the Investor Day organized by Hyperion in Madrid, Casado emphasized the fund’s vision: “The goal is for Hyperion Fund to become the first global manager specializing in Defense.” He also highlighted that investment in “low-cost” defense represents a significant opportunity for European companies, driven by artificial intelligence and cheap energy.
Casado also noted that “Europe urgently needs to defend itself; for this, it must promote innovation, public budgets, and private initiatives.” He pointed out a transformation in the sector: previously, defense exported innovations like GPS, lasers, or the Internet to the civilian world, whereas now private companies are introducing their advances into defense, such as drones and artificial intelligence.
Finally, he stressed the importance of creating a supportive framework for investment: “Europe not only needs investments but also a framework that makes it easier and removes obstacles; only then can we escape the dominance of US software and Chinese hardware.”
With this strategy, Hyperion Fund aims to establish itself as a key player in modernizing the European defense sector, accelerating private investment and promoting technological innovation across the continent.
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