Abu Dhabi-Based BlueFive Said to Plan $3 Billion Defense Fund

BlueFive Capital is planning to raise about $3 billion to invest in aerospace and defense companies, according to people familiar with the matter, with a view to capitalize on an expected pick up in military spending across the Middle East.

The Abu Dhabi-based private equity firm is targeting an initial raise of about $1 billion for the fund at first close expected in the third quarter, the people said, declining to be identified discussing confidential matters. The fund will target investments in firms whose technologies are aligned with the North Atlantic Treaty Organization, one of the people said.