UK-based private equity firm Star Capital is evaluating a potential initial public offering of Vincorion, a German defence technology business it acquired in 2022, according to a report by Bloomberg citing sources familiar with the matter.
Preliminary discussions have taken place with prospective advisers, with a potential listing that could value the business at up to €1bn, the sources said. While no final decision has been made, Star Capital is said to favour a public markets exit over a trade sale, despite inbound interest from potential strategic and financial buyers.
The process remains at an early stage, and key details including timing and structure of the offering are still under consideration. Star Capital reportedly declined to comment on the matter.
Headquartered in Germany, Vincorion develops mission-critical power systems and components including generators, electric drives, gensets, and hybrid power systems for defence and civil applications. The company employs around 900 staff across sites in Germany and the US and reported approximately €200m in revenue in 2024.
The prospective IPO comes amid rising investor appetite for European aerospace and defence assets, as geopolitical tensions and increased defence spending across the continent continue to drive sector valuations. Governments have boosted procurement budgets in response to the ongoing war in Ukraine and broader security concerns.
Star Capital acquired Vincorion from Jenoptik AG and is now weighing its options amid supportive market conditions. Since its establishment in 1999, the London-headquartered firm has raised over €2.5bn and typically targets Western European businesses with enterprise values between €50m and €1bn.
