Michal Strnad launches €10 billion investment firm to diversify beyond defense sector

Michal Strnad, the Czech billionaire behind arms maker Czechoslovak Group, is expanding his reach well beyond defense manufacturing by launching a new investment firm with the capacity to deploy up to €10 billion, or about $11.7 billion, in Europe and the United States, according to Bloomberg. The move signals a broader push by one of the European Union’s richest men in the east of the bloc to buy into sectors and companies outside his core weapons business, even as he argues that the market is not properly valuing the company he already controls.

Bloomberg reported that the new vehicle is intended to pursue acquisitions on both sides of the Atlantic, giving Strnad and his team significant firepower for potential deals. The plan comes at a time when the defense industry has benefited from elevated demand and higher spending in Europe, but it also suggests Strnad is looking to use his wealth and financing capacity to diversify. In a separate Bloomberg report, he said CSG’s share price does not reflect the company’s value or its expansion plans, underscoring his view that the business remains undervalued despite its growth prospects.

Strnad’s rise has made him a major figure in Europe’s industrial and defense landscape. Czechoslovak Group, commonly known as CSG, has expanded through acquisitions and supply deals in recent years, building a portfolio that spans ammunition, vehicles and other military-related products. The new investment firm could allow him to move into a wider range of targets, including companies in the United States, where defense, manufacturing and industrial assets may be of particular interest to a European buyer with substantial capital.

The timing matters because Europe’s defense sector has been reshaped by Russia’s full-scale war in Ukraine and by pressure on governments to replenish stockpiles and strengthen production capacity. Investors have also been watching whether defense-linked groups can sustain recent gains as governments commit to longer-term spending. A new investment platform backed by one of the region’s wealthiest entrepreneurs could increase competition for assets and may create new partnerships across the industrial and defense supply chain.

For Strnad, the launch appears to be both a strategic expansion and a statement of confidence in his empire’s future. By signaling that he is prepared to commit billions to acquisitions, he is positioning himself as more than an arms manufacturer; he is also emerging as a cross-border investor with the scale to influence broader industrial consolidation. What happens next will depend on where the firm chooses to invest and how aggressively it pursues deals in Europe and the US.