Billionaire Porsche family prepares for war with new defence fund

Telegraph

2 days ago

The German billionaire family behind Porsche is launching a new fund focused on investing in defence as it seeks to cash in on Europe's rearmament drive.
Porsche SE – the powerful holding company run by the Porsche family – said it wanted to 'defend our values, democracy, and freedom' by pursuing a range of investments in the sector.
The company, which has stakes in its eponymous luxury carmaker and Volkswagen, is expanding into weapons as it claimed we are 'in a world where freedom and security are no longer a given'.
In particular, Porsche SE called out Russia's 'war of aggression against Ukraine, growing geopolitical tensions in Asia, and increasing cyberattacks on critical infrastructure'.
To expand its fund, the Porsche family is planning to attract investors across Germany and Europe.
The shift into defence is a symbolic moment for the Porsche family, which has generally avoided working with the defence sector since the 1960s.
Ferdinand Porsche, the founder of the luxury marque Porsche AG and the engineer behind the bestselling Volkswagen Beetle, was a notable figure in Nazi Germany.
He played key roles in tank design, turret production and even had a brief spell working on the V-2 rocket, as he became a friend of Adolf Hitler in the process.
Ever since, his descendants have tried to move past this chapter in their history.
However, Porsche SE said a renewed focus on defence in Europe had created an opportunity that it intended to capitalise on.
Hans Dieter Pötsch, chairman of Porsche SE, said: 'On our way to becoming a diversified investment platform, we are closely monitoring the areas of defence capability, security and European resilience.
'With regard to portfolio investments, our aim is to increase our involvement in the defence and defence-related sectors while maintaining our core focus on mobility and industrial technology.'
The launch of the defence fund, first mooted by the Porsche family in March, comes amid a major German rearmament push.
Friedrich Merz, Germany's Chancellor, secured support in March for an easing of his country's long-standing 'debt brake', turning the taps on for €500bn (£432bn) of investment and ensuring that any defence spending above 1pc of GDP will be exempt from borrowing restrictions.
Porsche SE said its investments would focus on technology-driven areas including satellite surveillance, reconnaissance and sensor systems, cybersecurity or logistics and supply systems.
A company spokesman said: 'Our core holdings confront their past. Both Volkswagen AG and Porsche AG see dealing with their history as a permanent task and continue to dedicate themselves to this process.
'For this reason, we view responsibility not as a historical burden but as a mandate for the present.
'Any investments by Porsche SE in defence and security infrastructure contribute to strengthening Germany and Europe. We take our historical responsibility seriously and carefully review our investments.'
The investment fund comes amid a surge in the value of defence stocks since the turn of the year. German defence giant Rheinmetall, which is Europe's biggest producer of ammunition, has risen by 161pc.
FTSE 100 nuclear submarine contractor Babcock has also seen its shares soar by 95pc over the same period, while BAE Systems has climbed 52pc.