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Private Equity

Cybersecurity for Private Equity

Protect deal value from day one. Pre-acquisition due diligence, portfolio company security assessments, and cyber risk management for PE firms managing billions in assets.

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$4.88M

Avg Breach Cost

73%

PE Firms Targeted

2-4wk

Due Diligence

SEC+

Compliant

Why Cyber Risk Is Now a Board-Level Concern

Private equity firms face unique cybersecurity challenges. Cyber risk can destroy deal value overnight, and the SEC now expects PE firms to manage it as part of fiduciary duty.

Hidden Breach Liability

Undisclosed security incidents in target companies can result in material post-acquisition costs. Without proper due diligence, you inherit breaches that occurred months or years before closing.

Portfolio Company Risk

A single compromised portfolio company can expose the entire fund. Ransomware can halt operations, and data breaches trigger regulatory investigations that distract management from value creation.

SEC Regulatory Pressure

The SEC's 2024 cybersecurity rules require registered investment advisers to implement written cybersecurity policies. LP expectations around cyber risk management continue to increase.

Deal Room Security

Sensitive financial data, term sheets, and proprietary deal information flow through virtual data rooms and email. Sophisticated threat actors target PE deals to steal non-public information.

Cybersecurity Solutions for PE Firms

From pre-acquisition due diligence to portfolio-wide security programs, we help PE firms manage cyber risk across the investment lifecycle.

Cyber Due Diligence

Pre-acquisition security assessments that identify hidden risks, quantify remediation costs, and inform deal terms. Delivered on deal timelines.

Portfolio Security Programs

Standardized security frameworks across portfolio companies. Consistent policies, shared services, and economies of scale for security investments.

Fractional CISO for PE

Senior security leadership for your fund and portfolio companies. Board reporting, vendor oversight, and strategic guidance without full-time cost.

Incident Response

When portfolio companies face security incidents, we mobilize rapidly to contain threats, manage communications, and protect deal value.

SEC Compliance

Cybersecurity policies and procedures that meet SEC requirements for registered investment advisers. LP due diligence questionnaire support.

Deal Room Security

Secure communications for sensitive transactions. Email security, VDR oversight, and executive protection for deal teams.

Our Due Diligence Process

Cyber due diligence should inform deal terms, not delay closings. Our process delivers actionable intelligence on deal timelines while identifying risks that matter.

1 Document collection and management interview scheduling
2 Technical assessment and vulnerability scanning
3 Breach history and dark web exposure analysis
4 Compliance gap assessment and risk quantification
5 Executive summary with deal term recommendations

Due Diligence Deliverables

  • Executive summary with material findings and risk ratings
  • Technical assessment of infrastructure and application security
  • Compliance gap analysis with remediation cost estimates
  • Breach history and dark web exposure report
  • 100-day security improvement roadmap
  • Deal term recommendations and rep & warranty considerations

Private Equity Cybersecurity FAQ

Answers to questions we frequently hear from PE partners and operating teams.

Why do PE firms need specialized cybersecurity due diligence?

Generic IT audits miss risks that matter to deal value. We focus on material exposures: undisclosed breaches, regulatory non-compliance, and technical debt that will require post-close investment. Our reports are designed for investment committees, not IT teams.

How quickly can cyber due diligence be completed?

Standard assessments complete in 2-4 weeks. For time-sensitive deals, we offer accelerated reviews that deliver critical findings within 5-7 business days. We work around exclusivity periods and closing timelines.

What does PE cyber due diligence cost?

Cyber due diligence typically represents 0.5-2% of total due diligence spend. Given that a single undisclosed breach can result in millions in post-acquisition costs, the ROI is substantial. We provide fixed-price quotes based on target company size.

How do you handle portfolio-wide security?

We implement standardized security frameworks that portfolio companies can adopt quickly. This includes shared policies, preferred vendor relationships, and fractional CISO services that provide senior oversight across multiple companies efficiently.

Protect Your Portfolio Value

Schedule a confidential discussion about your fund's cybersecurity needs, upcoming deals, or portfolio company concerns.

Schedule a Consultation