Establishing portfolio-wide cyber standards reduces first-100-day vulnerabilities, accelerates integrations and strengthens investor confidence.
The Patchwork Problem
Most private equity portfolios are a patchwork of inconsistent cybersecurity practices. One company might have a strong SOC in place, another relies on outdated antivirus software. One has policies for MFA, another doesn’t. This inconsistency creates two problems:
-
Blind spots attackers can exploit.
- A lack of portfolio-wide visibility for investors.
For PE firms, this is a real systemic risk.
The First 100 Days: Hacker Heaven
As acquisitions near their closing stage, cyber criminals take notice. A 2023 Accenture report found 68% of companies saw a rise in cybersecurity incidents during the month of a deal closing, often more than double the norm. Why? Because attackers know these companies are distracted.
During transitions, portfolio companies often:
- Lack mature risk management
- Struggle with new IT governance
- Face social engineering attacks (fake PE emails, wire fraud attempts).
It’s no wonder many PE firms now delay public announcements until weeks after closing just to avoid painting a target on their new acquisition.
Why Standards Matter
You wouldn’t let each portfolio company define its own accounting rules. Cybersecurity should be no different. A portfolio-level standard ensures:
- Baseline Protection: Every company meets minimum requirements aligned to NIST, ISO 27001 or industry mandates.
- Flexibility: Standards scale for company size and maturity.
- Speed: Faster diligence and smoother integrations when every company follows the same playbook.
With standards, PE firms gain visibility across the portfolio, making risk management measurable, not guesswork.
DYOPATH’s Role in Standardization
DYOPATH partners with some of the nation’s largest PE firms to design and enforce cybersecurity standards, portfolio-wide. Our approach includes:
- Baseline Assessments: Identifying gaps at the company and portfolio level.
- Framework Alignment: Mapping controls to proven standards like NIST or ISO.
- Continuous Monitoring: Quarterly check-ins and real-time reporting to prove compliance.
The result is a stronger, safer portfolio—and greater investor confidence.
Why Limited Partners Care
Cybersecurity is fiduciary. Limited partners (LPs) want assurance that their capital isn’t exposed by a weak link. A strong cybersecurity standard demonstrates governance, discipline and risk awareness.
Cyber Risk = Portfolio Risk
By implementing a consistent cybersecurity program across holdings, PE firms reduce vulnerability, speed up integration and build trust with investors. And DYOPATH makes it practical, scalable and measurable.
Protect your portfolio before attackers find the gaps. Contact DYOPATH today to establish a cyber standard across your investments.
