Sector in Focus: Aerospace & defense

In this Sector in Focus report, we use Preqin data to track the expansion of private market investment in the aerospace and defense sector. We evaluate differences between public and private exposure to defense and aerospace companies, and we analyze regional trends in AUM, fundraising, and deal-making

• Private markets enable investors to add exposure to challenger aerospace and defense companies, including those developing dual-use technologies, with implications for portfolio risk and return

• North America accounts for the majority of private equity aerospace and defense AUM, while APAC is the largest VC market by deal count

• Defense-focused private equity funds have historically delivered stronger risk-adjusted returns than the broader buyouts strategy