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Private Equity: How Vigilance in Cybersecurity Can Unlock Greater Funding

Private Equity: How Vigilance in Cybersecurity Can Unlock Greater Funding

While cybersecurity remains a serious consideration for hedge funds, family offices and other asset managers, cyber threats present a unique challenge to today’s private equity firms. As the risk of cyber attacks rises worldwide, the private equity firms that pay the closest attention to how seriously they take such risk stand to gain the most.

As for risk management in general, your potential investors are becoming more and more demanding. By taking a proactive approach to cybersecurity, you’ll ultimately strengthen your investors’ confidence and trust.

In addition to protecting your firm from increasing cyber threats, demonstrating robust cybersecurity can also provide a competitive advantage when attracting investors and help maximize the value of your firm’s portfolio.

Following is some practical advice on how effective cybersecurity can unlock greater funding potential for your firm.

Use a dual strategy when assessing your cybersecurity risk

In order to fully prepare for a mounting cyber threat environment, private equity firms need to employ a dual strategy approach to their cybersecurity measures. First, you need to protect your firm and your investors’ assets. Second, you need to carefully assess the cyber risk at your target portfolio companies.

Protecting your firm and your investors

CSO reported earlier this year that damages from cyber crime are estimated to hit $6 trillion annually by 2021. And according to the