BlueFive Capital Targets $3B Fund for Aerospace & Defence Investments

BlueFive Capital, an Abu Dhabi-based alternative asset manager, is seeking to raise up to $3 billion to invest in aerospace and defence companies, according to a Bloomberg report citing unnamed sources.

The fund is expected to secure an initial $1 billion by the third quarter of 2026, as part of a strategy to capitalize on a potential rise in Gulf defence spending driven by the Iran conflict.

The investment focus will target companies whose technologies align with NATO standards, reflecting a strategic shift toward advanced defence technologies.

The report also noted that Michael Fallon, senior adviser to BlueFive and former UK defence secretary, has been meeting potential investors and companies to support fundraising efforts.

Last month, Washington approved the sale of up to $16.5 billion worth of air defence systems, radars, and missiles to Middle Eastern allies, including the UAE and Kuwait.

In parallel, the UAE reportedly spent an estimated $1 billion per day in March intercepting drones and missiles during the first 48 hours of escalation in the Gulf, analysts told AGBI.

Earlier this year, BlueFive Capital launched an aircraft leasing platform targeting regional and international airlines, while Bahrain’s sovereign wealth fund Mumtalakat Holding acquired a stake in the company last year.

The firm manages $4.4 billion in assets under management as of November, according to its website.