THE STRATEGIC IMPERATIVE: The Value of a Programmatic Approach to

Cybersecurity in Private Equity

Key Takeaways:

• Growing cyber threats pose risks to businesses. Private equity firms and their portfolio companies acknowledge the need for stronger cybersecurity and compliance programs.

• Ad hoc cybersecurity measures in private equity are no longer enough. The patchwork approach lacks a proactive strategy, resulting in fragmented defenses, gaps, vulnerabilities, and inadequate response capabilities.

• Hiring a reputable firm to lead a programmatic cybersecurity and compliance program for private equity offers tangible benefits: risk reduction, improved efficiency, and increased stakeholder confidence.

• Implementing a programmatic approach to cybersecurity and compliance generates value throughout the dealmaking process, ensuring long-term value retention and growth for portfolio companies while safeguarding investor interests

Introduction

Private equity firms and their portfolio companies face escalating cybersecurity threats, which can lead to financial losses, reputational damage, and legal ramifications. This article examines the benefits of adopting a programmatic approach to cybersecurity and compliance, as well as the advantages of engaging a reputable firm to manage comprehensive programs in these areas. It highlights how such an approach adds value by effectively mitigating risks and fostering sustainable growth.

Risk Mitigation

Engaging a reputable firm to run a holistic cybersecurity and compliance program significantly reduces the likelihood and impact of cyber incidents. Statistics show that organizations with mature cybersecurity programs experience 12 times fewer breaches and save over $1.5 million compared to those with less mature programs (Ponemon Institute, 2021). By implementing robust risk management strategies, firms can proactively identify vulnerabilities, prevent breaches, and minimize potential damage.

Operational Efficiency

Comprehensive cybersecurity and compliance programs optimize operational efficiency for portfolio companies. Integrated cybersecurity strategies reduce incident response time and costs. Accenture’s study shows that investing in cybersecurity and privacy capabilities yields a 40% higher ROI on technology investments. Engaging cybersecurity expertise and leveraging advanced technologies enhance operational resilience and facilitate seamless business operations for reputable private equity firms.

Stakeholder Confidence

Maintaining stakeholder trust is crucial for private equity firms and their portfolio companies. Engaging a reputable cybersecurity and compliance firm demonstrates commitment to safeguarding sensitive information and regulatory compliance. Deloitte’s survey shows that 82% of customers prefer vendors with strong data protection practices. Prioritizing cybersecurity and compliance attracts and retains clients, investors, and partners who prioritize data security.

Value Creation, Retention, and Protection

Private equity must prioritize cybersecurity and compliance for long-term value creation, retention, and growth. Studies demonstrate that strong cybersecurity practices lead to financial outperformance (Harvard Business Review, 2019), protecting intellectual property, reputation, and establishing a competitive edge. Adhering to industry regulations through robust programs safeguards against penalties, preserves market position, and ensures investor value protection.

Why Abacode Cybersecurity and Compliance?

As ACG’s endorsed partner for cybersecurity and compliance, Abacode offers unparalleled expertise in the field. With their ability to quarterback your cybersecurity and compliance program, Abacode provides comprehensive solutions to safeguard your organization from cyber threats and ensure regulatory compliance. Beginning with M&A due diligence and continuing through the lifespan of your portfolio company investments, Abacode’s record and industryleading capabilities make us the trusted partner to navigate the complexities of cybersecurity and compliance with confidence.

Abacode – Your Cybersecurity Quarterback

Engaging a proven firm like Abacode for a holistic cybersecurity and compliance program is invaluable. Their programmatic approach mitigates risks, enhances efficiency, builds stakeholder confidence, and creates long-term value. In today’s evolving cyber-threat landscape, proactive investment in cybersecurity becomes essential for navigating the digital age successfully. Contact Abacode now for a transformative cybersecurity journey.

To learn more about how Abacode helps private equity firms increase investor confidence, contact:

Mark Harless Partner Alliance Executive Abacode Cybersecurity & Compliance mark.harless@abacode.com