Marc van Voorst tot Voorst: Safety comes at a price
This column was originally written in Dutch. This is an English translation.
By Marc van Voorst tot Voorst, Deputy Managing Director of the Dutch Association of Private Equity Firms (NVP)
To remain safe, the Netherlands must ‘arm itself to the teeth’, according to King Willem-Alexander last week, just before King's Day. A statement that would have been unthinkable a few years ago.
However, the world has changed dramatically: a horrific trench war is raging on the European continent, America is withdrawing from its role as a global policeman and China is increasingly flexing its muscles. The geopolitical landscape is shifting. Europe realises that it must guarantee its own security.
In March 2025, Ursula von der Leyen presented the five-point action plan ReArm Europe, aimed at rearming Europe. The plan aims to mobilise a total of 800 billion euros in defence investments, including private capital.
A survey of NVP members revealed that the private equity and venture capital industry is not averse to investing in dual-use technologies: innovative technologies with both civilian and military applications. Direct investments in ammunition and weapon systems (single use) are generally seen as a task for the government. There are also still some bottlenecks when it comes to dual-use investments.
Research by PwC identified significant obstacles: uncertainty in business cases, underutilisation of public financing instruments, ESG policy and regulations, reputational risks, and technological and market-related risks. These points were recognised in discussions with NVP members. Another problem is that fund investors (such as institutional investors and pension funds) still use exclusion lists.
However, we are also seeing movement here. Fund investors and limited partners are increasingly looking to funds that invest in defence technology. At the pre-NATO summit, pension fund ABP even stated that ‘security’ should become part of the ‘S’ in ESG. The panels are also shifting in this area.
For the time being, the willingness to set up specific dual-use funds is still limited. Often, the necessary knowledge is simply lacking. But that could change quickly if investor demand continues to grow. After all, we are only at the beginning of this trend — a trend that will only grow stronger and in which the government, investors and investors must all take responsibility.
There is an urgent need for more dialogue. Governments, investors and investors must sit down together to remove obstacles and find a common way forward. The government should take a coordinating role in this. Where possible, the NVP also contributes to facilitating this discussion. One thing is certain: ‘arming’ the Netherlands and Europe to the teeth will take time, commitment and investment. We cannot afford to delay.
