CIEL Defence
Long-term Canadian capital for a stronger defence industrial base
Building Canada's Defence Industrial Capacity
Canada’s defence industrial base is entering a period of significant investment and renewal. Meeting future requirements will depend not only on new technologies, but on businesses capable of manufacturing, integrating, maintaining, and sustaining them.
CIEL Defence is the defence-focused investment arm of CIEL Capital, a Canadian private investment firm founded by Wayne and David Albo in 2012.
We invest in and grow Canadian-controlled businesses with specialized industrial capabilities. We also pursue partnerships with international technology companies seeking to establish or expand manufacturing and related operations in Canada.
Our approach builds on CIEL’s experience acquiring, operating and growing Canadian businesses with long-term family capital.
Why Canadian Capital Matters
Defence manufacturing requires sustained investment in facilities, equipment, skilled people, and specialized capabilities.
These investments often take years to develop and must be supported through changing market conditions and procurement cycles.
CIEL invests its own long-term family capital without a fixed fund life or predetermined exit timetable.
This allows us to make investment decisions based on the needs of the business and its long-term prospects, rathan than a prescribed holding period.
We believe Canadian-controlled businesses have an important role in sustaining domestic manufacturing capacity, developing specialized expertise and strengthening defence supply chains. Canadian ownership and international cooperation are complimentary. By bringing together Canadian capital, established operating businesses and technology from qualified international partners, we see opportunities to develop capabilities that can serve Canadian requirements and compete in export markets.
Our objective is to build commercially successful businesses with the capital, management support, and continuity required to grow over time.
What We Look For
We invest in businesses that matter within their value chains, not simply in attractive sectors.
Where reliability is essential
We are particularly interested in businesses where the cost of failure is high, replacement is difficult, and product reliability is essential. These characteristics often arise in long-cycle defence programs, specialized manufacturing, and regulated industrial markets.
A credible path into defence
We also consider strong industrial and service businesses with a credible path into defence, as well as opportunities to establish Canadian-controlled operations with international technology partners.
Defensible, lasting value
Our interest is not limited to a particular platform, program, or technology. We look for businesses with defensible market positions, capable management teams and opportunities to build lasting value through investment and operational support.
Areas of Focus
01
Munitions, pyrotechnics, energetics
+
02
Land systems
+
03
Air defence and counter-drone systems
+
04
Electronic warfare, communications and sensing
+
05
Specialized components and subsystems
+
06
Sustainment, maintenance, repair and overhaul
+
07
Training and readiness
+
08
Dual-use industrial capabilities
+
If your business provides capabilities that Canada’s defence industrial base depends on, we would welcome a conversation.
→
Track Record
CIEL’s experience in defence is grounded in investments in operating businesses serving demanding military and industrial markets.
HFI Pyrotechnics Inc.
Prescott, Ontario.
Canada's pyrotechnic centre of excellence and the only fully Canadian-owned member of the Department of National Defence's Munitions Supply Program. HFI manufactures specialized pyrotechnic and munitions products for the Canadian Armed Forces, the US Navy and NATO allies, is one of the few red phosphorus-licensed facilities in North America, and operates from a licensed explosives site of nearly 3,000 acres: the land, magazines and compliance envelope that scaled munitions manufacturing and storage require. CIEL acquired majority ownership in 2023 and is investing to scale HFI's capacity for the demand ahead.
Exited
General Kinetics
Brampton, Ontario.
Dampers, shock absorbers and suspension systems for military and off-highway vehicles, found on virtually every combat and tactical vehicle in the US military. CIEL backed a strong leadership team through a period of growth and international expansion, and sold the business to Horstman Group, a division of Germany's RENK Group, where it continues to grow.
Our role is to bring investment discipline, operating experience and the right expertise to the businesses we support.
Our Advisors and Network
Defence industrial investment requires more than capital. It demands an understanding of manufacturing, supply chains, regulation, long-term customer requirements, and the practical challenges of scaling industrial businesses.
CIEL draws on its investment and operating teams and a wider network of advisors and industry professionals, including:
Senior executives with experience leading Canadian defence and industrial manufacturers.
Individuals with experience in defence policy, government procurement and public-sector requirements
Specialists in corporate development, finance, legal and regulatory matters.
We draw on this experience as appropriate to the needs of individual investments and prospective partnerships.
For Allied Partners
CIEL Defence works with international technology and industrial companies interested in developing manufacturing, integration and other defence industrial capabilities in Canada.
Read more ↓
We favour partnerships built around clear responsibilities, aligned investment commitments and a shared long-term business plan.
For Founders
For owners of established businesses, succession involves more than a valuation and transaction terms. It also involves the future of the company, its employees, its customers, and the capabilities developed over many years.
Read more ↓
We understand that every company and ownership transition is different. Our approach is discreet, flexible, and grounded in the circumstances of each business.
Latest Development
CIEL Defence and ASELSAN Sign Memorandum of Understanding
On October 23, 2026, CIEL Defence and ASELSAN signed a memorandum of understanding to explore opportunities to develop majority Canadian-owned defence industrial capabilities.
The framework allows the companies to evaluate potential cooperation involving technology and know-how transfer, domestic manufacturing, systems integration and Canadian supply-chain development.
The MoU is non-binding. Any specific investment or industrial project would be subject to further commercial agreements and applicable regulatory approvals.
Get in Touch
CIEL Defence welcomes confidential discussions with Canadian business owners, management teams and prospective international business partners.