Defense investing is rapidly moving from the margins to the center of capital markets as geopolitical fragmentation, rising global tensions, and technological innovation reshape how nations allocate resources. What was once viewed as a niche or even overlooked sector is now emerging as a critical pillar of global infrastructure and security.
In this episode of The Bid, host Oscar Pulido sits down with Rolf Heitmeyer, Head of Industrials in BlackRock’s Fundamental Equities Group, to explore the forces driving this shift in defense investing. They discuss the surge in global defense spending, the changing competitive landscape between incumbent contractors and new entrants, and how innovation - from AI-enabled systems to low-cost drones - is transforming modern warfare.
As geopolitical megaforces continue to evolve and technology reshapes security priorities, defense investing is becoming an increasingly relevant theme for investors seeking to understand the intersection of global politics, innovation, and markets.
Key moments in this episode:
00:00 Introduction
01:41 AI Spending Surge Explained
04:52 Tech Industry Shakeup Ahead
07:14 Attritable vs Exquisite
09:49 Scaling the Arsenal
11:32 Startup Innovation Tour
14:39 Defense in Portfolios
16:05 A Long Supercycle
17:13 Wrap Up and Disclosures
Defense investing, capital markets, AI investing, megaforces, geopolitical risk, stock market trends, defense technology
Sources: “Venture capital investment in defense tech surges while M&A activity slows” S&P Global March 2026; “Over 11,000 munitions in 16 Days of the Iran War: ‘Command of the Reload’ Governs Endurance” RUSI, March 2026; Department of War Statistics; Data from BlackRock Fundamental Equities as of April 2026.
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