Due to the pandemic, cyber attacks have been on the rise with private equity firms quickly becoming a top target. With deep pockets and little concern about wiring large amounts of money, PE firms and their portfolio companies make a prime target for bad actors.
While big PE shops have the resources to shore up their cybersecurity before a breach, or while it happens, that is not the case for many small to mid-sized firms.
And with Performance Improvement Partners seeing a 750% increase in portfolio-wide cyber initiatives in H1 2020 vs. H1 2019, the need for PE firms to heighten cybersecurity measures for their firm and portfolio companies is increasing at a rapid pace.
As Dan DeFrancesco writes in the full Business Insider article, “Private equity has increasingly come into the public eye in recent years, thanks to big deals and the growing profiles of leading executives. However, increased attention isn’t always a good thing. Hackers, too, have noticed the rise of private equity and begun targeting the firms — and their portfolio companies — in hopes of tapping into their deep pockets.”
DeFrancesco’s article features quotes from Performance Improvement Partner’s EVP of Growth & Client Services, Patrick Donegan, and Infrastructure Practice Manager and Cyber Lead, Fred Purdue.
Purdue shares why cybersecurity is a critical concern for PE firms, explaining “If you’re a CEO, there might be a 5% chance that you’re going to have a significant cybersecurity event this year. There’s a 100% chance the head of sales is going to come in and complain about Salesforce tomorrow…If you’re a private equity firm and you own 20 of those companies that has a 5% risk each, you have a certainty that you’re going to have a significant type of attack. So the risk posture is different.”
To understand portfolio risks, and what actions are needed for protection, private equity firms can reserve a complimentary cyber security workshop led by Purdue and his team.