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Private Equity Must Focus on Cybersecurity Defenses
By Michael Corcione, Principal; Stefan Prins, Senior Manager; Jay Monaghan, Partner and John P. Kavanaugh, Partner
Private Equity (PE) firms are taking notice of the increasing number of queries from investors and new or proposed regulations from the Securities and Exchange Commission on cybersecurity risks. As such, PE firms are enhancing their pre-acquisition due diligence efforts to gauge a portfolio company’s current cybersecurity maturity and to identify gaps and weaknesses exposing them to the risk of cyberattacks.
Additionally, PE firms are also becoming more cognizant of the need to maintain portfolio company oversight of their responses to cybersecurity risks during the holding period to ultimately avoid surprises when the time comes to exit the investment.
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