Bpifrance has officially launched a new investment product called "Bpifrance Défense," aimed at giving French citizens an opportunity to invest in the defense and cybersecurity sectors. As reported by BFMTV on March 21, 2025, the fund is a part of initiatives to strengthen financing for approximately 4,500 small and medium-sized enterprises (SMEs) and mid-sized enterprises (ETIs) in these strategic industries.
The announcement of the fund was made by Éric Lombard, the Minister of Economy, on March 20, during a session dedicated to funding the Base industrielle et technologique de défense (BITD) at the Ministry of Economy and Finance. According to Lombard, this fund is designed specifically for individuals in France who wish to contribute financially to a critical sector of the nation's economy. Noteworthy is the fact that the investments through this fund will not benefit large corporations such as Airbus or Safran but will target smaller enterprises critical to national security.
The investment product will be accessible through life insurance contracts or directly from Bpifrance. Lombard explained that the minimum entry point for investing in Bpifrance Défense will be set at 500 euros, with a ceiling for total investment that may reach "a few thousand euros." This model is part of a broader governmental strategy to enhance the capabilities of French SMEs and ETIs to absorb increasing public defense orders, with military programming laws predicting a surge in orders by 3 billion euros this year, escalating to approximately 17.5 billion euros by 2030.
Unlike traditional savings accounts like the Livret A, the Bpifrance Défense investment is not a regulated savings product. It represents a medium to long-term commitment, requiring that funds be locked for at least five years, meaning investors will not have the freedom to withdraw their money until the term ends. While the potential for returns remains uncertain, this investment carries risks similar to any equity investment. As Bpifrance’s CEO Nicolas Dufourcq articulated on France 2, "when you invest in equity, you can lose everything," emphasizing the inherent risks involved.
The government is actively encouraging banks and insurance companies to introduce similar private equity funds. Lombard noted that significant banking and insurance networks are expected to offer their own defense-related investment products soon. Additionally, the Autorité des Marchés Financiers (AMF) will streamline approval processes for these new funds, enabling quicker market access.
This initiative not only aims to expand financing sources for critical defense sectors but also seeks to raise awareness among French citizens about the importance of supporting the nation’s industrial ecosystem. By involving ordinary citizens in the defense financing process, the government intends to foster a connection between public savings and the country’s industrial sovereignty.
The Bpifrance Défense fund is expected to be available for subscription starting from the second half of 2025. Until that time, interested investors can still subscribe to Bpifrance Entreprises 3, which will remain open until September 18, 2025. The introduction of the Bpifrance Défense fund marks a significant step towards creating a more robust private investment landscape in the national security sector.
Investors can look forward to an opportunity that is not just financially motivated. "Given the rising demand for military equipment," said Philippe Crevel, director of the Cercle de l’épargne, "the returns on this fund could be attractive and exceed average performance over a long period." However, potential investors should be cautious, as the fund’s performance could vary. Previous Bpifrance funds aimed for returns between 8% and 10%, net of management fees but subject to taxation. A recent AMF study revealed that median performance for similar funds hovered between -2.4% and 5% towards the end of 2023, indicating that results can be unpredictable.
As the Bpifrance Défense fund prepares for its market debut, the French government is keen on creating a synergy between citizen savings and strategic defense capabilities, inviting French citizens to actively participate in a pivotal slice of the national economy.
