UK DEFENCE & SECURITY FUND
Investing in a More Secure Future
UK DEFENCE & SECURITY FUND
European defence spending growth since 2014
£4.49M
The average cost of a data breach, 2024
NATO' allies agree on new GDP defence spending target
£150B
The estimated size of the global cybersecurity market by end of 2025
£2.5T
Global defence market size (2024)
£8T
Annual global projected cybercrime cost by 2025
5.0%
50%
Investing in World-Class, Home-Grown UK Defence, Dual-use and Cyber security Technologies across the Value Chain
The fund is a Guernsey-based, closed-end LP, advised by Albany Investment Limited ('Albany').
Albany comprises a team of experienced financial professionals across defence and intelligence, cyber security technology, and private growth equity, supported by an active, seasoned Advisory Board. Collectively, Albany has a distinct advantage in accessing proprietary deal flow.
The fund has an independent board that oversees both corporate and investment activities.
Positioned uniquely, the fund is the first UK-based, dual-use defence-focused fund, providing a first mover advantage. The fund also seeks to be both the first institutional investor and lead the Series A funding round.
The fund takes advantage of the deeply fragmented market by providing capital to innovative companies throughout the defence, dual-use and cyber security value chain with proven capabilities as suppliers for government entities and law enforcement, expanding their markets and offerings beyond their original public sector vertical, and partnering them with other sector participants.
STRONG TAILWINDS
The Golden Age of Cyber Security Investment
GOVERNMENT
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87% of UK local government organisations have experienced a phishing attack in the past 12 months.
TRANSPORT
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NotPetya virus caused Maersk to partially suspend operations, causing congestion in 76 ports worldwide, and resulting in business losses of $300mn in the initial quarter after the attack.
HEALTHCARE
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Singapore suffered its "most serious" data breach to date, compromising personal data of 1.5mn healthcare patients including that of its Prime Minister.
FINANCIAL SERVICES
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Equifax, the US based credit reporting agency, was subjected to a high-profile data breach in 2017. Two years after, the company announced its financial results for the first quarter of 2019, ending March 31, reporting a loss of $555.9mn.
ENERGY
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Colonial Pipeline was hacked by a ransomware hack bought/downloaded from the dark web costing $40 in cryptocurrency. The $4.4mn ransom was paid, of which $2M was recovered by Elliptic, a UK cyber security company.
EDUCATION
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31.5 terabytes of data were hacked in a campaign against 320 universities in nearly two dozen countries around the world.
STRONG TAILWINDS
A New Strategic Priority
MACRO DRIVERS
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Heightened geopolitical volatility is reshaping the global threat landscape, from state-sponsored cyber warfare to contested physical and digital infrastructure.
Rising defence spending and national preparedness, particularly across Europe, are catalysing investment in defence, dual-use and cyber security technologies.
Increased commitment to sovereignty: both the US and the EU are aggressively realigning budgets toward technology and defence autonomy.
REALIGNMENT
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European defence spending up 50%+ since 2014; NATO nations investing 2–3.5% of GDP on core defence, with a further 1.5% on broader defence-related measures such as cyber security.
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​Global defence budgets surged to $2.46T in 2024, with a further $88.4B increase forecast in 2025.
Modern defence requires adaptable, interoperable, dual-use technology with high demand for secure comms, autonomous systems and AI-enabled defence tools.
Infrastructure upgrades and civil preparedness now require dual-use capabilities.​ Demand for dual-use innovation, defence-grade tools applicable to civil, emergency, and industrial Defence, are at a generational high.