Danish investment house acquires 25% of defence company

Danish investment house Lundgreen's Capital A/S has bought 25% of the shares in the innovative defence company Normark Defence. Peter Lundgreen, Founding CEO at Lundgreen's Capital A/S, says, “This is a fantastic deal. In February this year, we launched our new alternative high-tech defence investment fund. The cooperation between Normark Defence and our defence fund is already so strong that a cross-ownership between the two mother companies makes even better sense. Another reason for buying the stake is to secure our investment and wealth clients with continuous and direct access to defence industry investments over the next decade.” Lundgreen adds, "Of course, we also expect the investment in Normark Defence to be very profitable for our shareholders."

The alternative investment fund Lundgreen's Invest – High-Tech Defence has the right to fund all the innovations that Normark Defence develops, though the fund can also invest in other young defence companies and defence innovations. Common for all investments is that the fund does not invest in weapons, ammunition, or nuclear products.

Another characteristic of the alternative fund is its investment allocation towards non-listed and early-stage companies. In this aspect, Lundgreen emphasizes, “Lundgreen's Capital is already successfully managing other alternative funds with investments in young companies, so we are very comfortable with companies at this stage in their life cycle.”

Not only is the defence sector set to expand unparalleled during the next ten years, but Normark Defence is also expanding exponentially. So far this year, the company has launched seven new high-tech innovations, and four more are expected to be showcased before the end of the year. In 2024, Normark Defence has also established innovation offices at three Danish technical universities and a new head office in Copenhagen.

In line with its strong expansion, Mikkel Normark, CEO of Normark Defence, explains that “the innovation creation is based at Normark Defence's innovation offices at the technical universities. This setup plays an important role in accessing new research and technology. To keep the expansion rate at Normark Defence, the next step is to establish more innovation offices at carefully selected technical universities in Europe. So far, the plan for 2025 is to open four new innovation offices outside Denmark.”

Concerning the cooperation with Lundgreen's Capital, the assessment from Normark is “that the cooperation is essential for our continued strong expansion, and it's an extreme advantage that Lundgreen's Capital can facilitate our full funding needs.” In this context, Normark expounds that the change in the company's shareholder structure is also a part of its expansion strategy. This transition is nearing finalization, with only a 15% stake remaining in Normark Defence to be sold to a professional investor.

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