London, 31 October 2026 — EBM Weekend Read
For decades, defence was one of Europe’s least fashionable industries: slow-growing, politically awkward and shunned by many investors. Now it is creating fortunes faster than almost any other sector. Russia’s war in Ukraine, a more unpredictable America and NATO’s push to raise military spending towards 5% of GDP have unleashed a wave of money. A new class of defence billionaires is emerging, and they are starting to spend their wealth far beyond the arms industry.
The Ammunition King
The most striking example is Michal Strnad. The 34-year-old took control of Czechoslovak Group (CSG) from his father in 2018 and turned it into one of Europe’s biggest ammunition and arms makers. CSG listed in Amsterdam in January in the largest ever flotation of a pure defence company, making it the most valuable listed company in Central Europe and earning Strnad €2.55bn.
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SubscribeHe is now the Czech Republic’s richest person, worth an estimated $18bn. And he is spending: a personal 14% stake in Pirelli, and this month a stunning €30bn offer for Delfin, the family holding company behind Ray-Ban, reported by Expats.cz and Bloomberg.
The Start-up Millionaires
The new wealth isn’t confined to traditional arms makers. A wave of defence technology start-ups, building drones, satellites and AI for the battlefield, has attracted record investment. Germany’s Helsing, which develops AI for defence, was valued at $18bn this summer, making it Europe’s most valuable defence start-up, according to Europe Defence Tech.
Others are close behind. Finland’s ICEYE, which runs a fleet of radar satellites, is valued at more than €10bn. German drone maker Quantum Systems is worth about $8bn, Portugal’s Tekever $6.4bn, and Britain’s Cambridge Aerospace $3.4bn. Europe now has around a dozen defence and dual-use unicorns, and their founders and early backers are joining the ranks of the very rich.
They are part of a broader boom in European technology, as our look at Europe’s fastest-growing start-ups and record tech investment shows. National champions are emerging too, such as France’s ChapsVision, Europe’s answer to Palantir, and satellite firms like Reflex Aerospace, which Nvidia has just backed.
Old Money, New Riches
Established defence dynasties are also getting richer. Shares in Germany’s Rheinmetall have multiplied many times since Russia’s full-scale invasion of Ukraine in 2022. The Wallenberg family’s Investor AB is the biggest shareholder in Sweden’s Saab, while the Dassault family controls the maker of the Rafale fighter jet. Turkey’s Bayraktar family, whose Baykar drones became famous in Ukraine, has expanded into Europe, buying Italian aircraft maker Piaggio Aerospace.
Where the Money Comes From
The engine behind these fortunes is public spending. European governments have pledged to spend far more on defence, and the EU has created new lending to help them buy weapons, alongside its €90bn commitment to Ukraine. Order books for ammunition, drones and air defence are full for years ahead.
That makes defence one of the few European industries with guaranteed long-term demand, exactly what investors crave in a volatile market.
The Political Question
The rise of the defence billionaires raises uncomfortable questions. Their wealth comes largely from taxpayers’ money, spent in response to war. And as they diversify, buying stakes in tyres, eyewear and finance, they are gaining influence over companies far beyond their own industry.
Strnad’s bid for Delfin, which holds stakes in Generali, UniCredit and Monte dei Paschi, has already sparked fears in Italy about foreign control of national champions. It echoes wider unease about who is buying Europe’s prize assets, from Gulf money in Man City and Heathrow to private equity bids for listed companies.
Politics could also change the outlook. Nationalist parties are rising across Europe, from the AfD in Germany to Marine Le Pen’s National Rally in France, which has promised to avoid “reckless” military adventures and end aid to Ukraine. A peace deal, or a shift in political mood, could cool the boom.
What I Think
Rearmament is creating Europe’s most important new fortunes since the tech boom, and the defence billionaires are only just getting started. Their companies are filling a genuine security gap, and Europe needs a stronger defence industry of its own. But their growing wealth and ambition will bring scrutiny. When fortunes built on public spending are used to buy influence over banks, insurers and consumer brands, governments will start asking harder questions. Expect more deals like Strnad’s, more defence IPOs, and more political pushback. The new arms barons are rich and powerful, and Europe will have to decide how much of its economy it is happy for them to own.
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