The Luxembourg Ministry of Finance, together with the Ministry of Defence, the Ministry of the Economy and the National Credit and Investment Corporation (SNCI), has presented a new National Defence Fund that will provide EUR 150 million over five years to support start-ups, scale-ups and other innovative companies active in defence and dual-use sectors. Managed by SNCI, the fund is part of Luxembourg's defence industry strategy and is designed to direct capital to strategic technologies while increasing economic substance in Luxembourg. The fund is structured through a trust agreement under which the Luxembourg state and the Intergenerational Sovereign Wealth Fund of Luxembourg (FSIL) will contribute EUR 75 million in total, while SNCI will commit a further EUR 75 million through co-investment. Its investment policy will target cybersecurity, space, advanced materials and automation, and it may invest both in investment funds and in companies alongside eligible funds. The stated objectives are to strengthen domestic innovation and ecosystem development, contribute to Luxembourg's defence and security spending commitments in line with NATO objectives, and generate an economic return. Investment decisions for the two trustors will be taken by an investment committee, while SNCI will manage preparation and execution of investments, portfolio monitoring, reporting, administration, accounting, treasury and compliance. The structure may also draw on SNCI's long-standing cooperation with the European Investment Fund.

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