This research service analyses private equity and venture capital investment trends in the European aerospace and defence industry. Private placement transactions from January 2006 to December 2011 have been analysed as part of the study. The research service discusses some of the drivers, restraints, and key industry characteristics, and the impact for investors regarding the same. The study also includes trends that could impact the decision making of an investor. The study concludes with recommendations for investors, keeping in mind the nature of the industry and current economic scenario.