CVC keeps Israeli defence investment low-profile amid controversy concerns
TOP STORY: CVC Capital Partners has publicly announced its acquisition of a 40% stake in Israeli defence technology company Fibrotex, amid concerns over potential controversy surrounding the investment, according to a report published by the Financial Times.
CVC Capital Partners has quietly acquired a 40% stake in Israeli defense technology firm Fibrotex, according to the Financial Times. The investment, valued at around €250 million, comes from the Dutch-listed private equity firm's German team and is expected to support Fibrotex's international expansion and product development. Adi Blum, a former Israel Defense Forces member, maintains a stake in the company.
Unlike other acquisitions led by CVC, the Fibrotex deal was only disclosed to the firm's limited partners, not the public, reflecting concerns about potential backlash over investing in Israel's defense sector amid Gaza conflict and political tensions. CVC described Fibrotex as an international business operating in the US, Japan, and Australia, although the company has a significant presence in Israel.
The transaction is the largest of five investments signed by CVC Catalyst to date and reflects a growing trend in private equity interest in defense-related businesses, driven by increased European military spending after Russia's invasion of Ukraine. However, such investments face heightened scrutiny from institutional investors and stakeholders due to controversial nature.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
