In October, Finserve Global Security Fund and Defence Sector News gathered industry colleagues, investors, and decision-makers in Stockholm, Gothenburg, and Malmö for seminars under the theme Defence Meets Finance. This was a continuation of the successful event the companies held in the spring. The aim is to highlight the importance of defence investments and promote collaboration between the finance and defence sectors.

– It is very important to create an understanding of how the defence and finance sectors can strengthen ties with each other. The finance sector is crucial for enabling faster growth and enhanced production capacity in the defence industry, says Jacob Wollheim, editor at Defence Sector News.

– Sweden has a strong defence industry and high competence in defence and is well-positioned to partake in a long-term structural investment theme in Europe and the world, says Joakim Agerback, portfolio manager at Global Security Fund.

Perspectives from the seminars

In Stockholm, Mikael Frisell, outgoing head of FMV's management and economic staff, and incoming director-general at MSB, began by emphasising the importance of defence innovation. "During 2022-2023, we placed orders with the industry totalling 90 billion kronor, the forecast going forward this year (2024) is just over 50 billion," he said, also stressing, "Far too many focus on the idea side of innovation, but the focus should be on getting it into operations & onto the battlefield. Only then can we say we are leading in innovation."

– Swedish leadership in defence innovation strengthens our security in peace, crisis, and war, said Josefin van der Meer from Vinnova, highlighting the importance of civil-military cooperation.

Equity analyst Hugo Lisjö from Carnegie emphasised that he did not see the European defence industry as overvalued and with continued high structural growth. Hugo von Essen from the Swedish Institute of International Affairs argued that the West needs to consider Russia's and China's long-term relationship and ambitions. "The Western world's policy should be to build deterrence long-term & strengthen Europe's capacity to manage its own security. Strengthen relations with middle powers like India, Turkey & Brazil," he said.

– To meet future threats, we must understand that everything is interconnected – from economic flows to security policy, & our investments in security are a prerequisite for free democratic societies, said Karl Engelbrektson, former army chief and now partner and Head of Advisory Board for Finserve Global Security Fund, who participated in all the seminars.

Regional elements and strategic outlooks

At the Malmö seminar, not far from the Southern Scania Regiment, Colonel Lennart Wideström, head of the regiment, participated. He spoke about Sweden's upcoming contribution to NATO's multinational forces in Latvia and the growth in the Armed Forces. "We are working hard to deliver with the current order situation," said Wideström, continuing: "we are still working with orders from 2020."

Pontus Agerteg, from the sensor company Bertin Exensor, emphasised the need for both flexible financing and payment to meet the needs of their customers. Inge Heydorn, technology and defence analyst, discussed how the semiconductor industry makes Taiwan geopolitically crucial.

In Gothenburg, Olle Ytterberg from Combitech discussed the importance of cooperation between industry and authorities for a strong total defence. Mia Kumm from RISE pointed out that the business sector's ability to quickly adapt is crucial in crisis and war. "Are investments in the defence industry needed? Yes, the global situation clearly shows that they are needed. But, we need the courage to implement them," concluded Kumm.

More upcoming opportunities

The seminar series is planned to continue next year, and interest from a wide range of actors is growing. "We see this as an important initiative to advocate for the sector, promote responsible investments in the defence industry, and stimulate innovation for both civilian and military use," concludes Agerback.

Read Global Security Fund's texts on Defence Sector News