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Apac investors bypass defence tech amid structural barriers

Target allocations to defence have stalled due to ESG mandates, illiquidity and scarcity of scaled assets.
Apac investors bypass defence tech amid structural barriers

Despite rising geopolitical tensions, Asia-Pacific institutional investors maintain a stark 0% target allocation to defence tech—the lowest globally, compared with 4% in EMEA and 3% in the Americas, according to the State Street Private Markets Study 2026. 

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