Cybersecurity: Threats every private equity firm should understand
Cybersecurity is becoming of more and more interest to private equity firms, at both the fund and the portfolio company level. However, there are too many private equity firms that still think their systems don’t contain a lot of sensitive data and often overlook that they are also an entry into some of the portfolio companies. Private equity firms should act as if a cyberattack is a matter of when, not if.
For private equity firms, cybersecurity is quickly becoming a significant part of the portfolio company acquisition process. Not only must firms ensure the protection of customer data and sensitive, proprietary company information, but neglecting the threat of a data breach can also run afoul of several federal agencies.