Latest news roundup on private equity sector developments this week

In a series of significant moves, European defence technology and digital banking sectors have seen a surge in investment activity.

Rishi Sunak, an unknown investor until now, has sold part of his stake in the British digital bank OakNorth to Affinity Partners. This marks a significant private equity investment in one of Britain's most prominent digital lenders.

Meanwhile, Advent has agreed to acquire Sapiens International Corporation for a total of $2.5bn in an all-cash transaction. The acquisition price represents a 64% premium to the company's undisturbed closing price on 8 August 2025. Sapiens shareholders will receive $43.50 per share. The completion of the deal is expected in Q4 2025 or Q1 2026, subject to regulatory and shareholder approval. Once the deal closes, Sapiens will become a privately held company.

In a separate development, Porsche SE has announced plans to create a dedicated defence investment vehicle. The fund, to be managed by Hamburg-based DTCP, could potentially reach €500m ($586m) in size. Porsche SE has dropped its previous restriction on backing only dual-use technology, indicating a broader approach to defence investments.

Porsche Automobil Holding SE and Deutsche Telekom AG are in advanced discussions to anchor this venture capital fund. The size and investor composition of the fund could still change.

Meanwhile, OakNorth, which began lending in the US in 2023, has issued around $1.3bn in loans in the country. The bank is targeting rapid expansion in the US. In a related move, OakNorth has agreed to acquire Michigan-based Community Unity Bank in an all-share transaction, pending regulatory approval.

Affinity Partners, founded by Jared Kushner, has also secured committed debt financing. The acquisition by Affinity Partners does not involve the acquisition of Sapiens International Corporation.

It's worth noting that Porsche SE's move into defence technology investment and Advent's acquisition of Sapiens are not directly linked to European defence technology venture capital funds.

Formula Systems will retain a minority stake in Sapiens. The completion of the deal is expected in the coming weeks.

Lastly, OakNorth, which has already established itself in the US market, is aiming for further growth. The bank, which has seen rapid expansion since its entry into the US market, is poised to make a significant impact in the digital banking landscape.