The European Union (EU) has shortlisted management firms from Sweden, the UK and France to oversee its planned €5bn ($5.8bn) Scaleup Europe Fund aimed at supporting companies in quantum computing, AI and other deep technology sectors, reported Bloomberg.

Sources with knowledge of the process indicated that the selection includes Sweden’s EQT and Northzone, France’s Eurazeo, and Atomico and Vitruvian Partners from the UK.

The EU is expected to select an external manager for the fund in April.

A representative from Eurazeo confirmed that the firm was shortlisted.

Atomico and EQT did not provide comment. Northzone, Vitruvian Partners and the European Commission did not respond to enquiries regarding their involvement, the news agency added.

The initiative comes as European technology firms face increased competition from counterparts in the US and China, with policymakers aiming to foster domestic alternatives amid ongoing challenges in international relations.

The European Commission plans to participate as a founding investor alongside private investors and pension funds.

According to an earlier statement by an EC spokesperson, there are plans to increase the fund’s size to €25bn ($29bn) over time.

German insurer Allianz has signed a letter of intent indicating its commitment as a founding investor.

The Commission has also approached the European Investment Bank, Wallenberg Investments, Denmark’s EIFO sovereign wealth fund, Spain’s Criteria Caixa and Novo Holdings as potential anchor investors.

The fund will target investments in strategic technologies such as advanced materials, robotics, clean energy and biotechnology.

Recipient companies must maintain their headquarters and main business operations within Europe and seek to raise investment rounds exceeding €100m ($116m).

The move follows recent acquisitions of European technology firms by overseas buyers; for example, Advanced Micro Devices acquired Finnish AI company Silo AI for $665m in 2024, while IonQ purchased UK-based quantum computing firm Oxford Ionics for more than $1bn in 2025.