A recent article published by Forbes explores the growing need for private equity firms to integrate cybersecurity directly into their investment strategy. As portfolio companies become increasingly interconnected through shared systems, cloud platforms, and third-party providers, the potential impact of a single cyber incident can extend well beyond one entity. Cyber risk is no longer isolated at company level — it can affect valuation, reputation, and exit outcomes across the portfolio.

The article highlights that cybersecurity due diligence must move beyond basic IT checks and become embedded within acquisition, integration, and value-creation processes. Investors are encouraged to assess governance structures, incident response maturity, third-party risk exposure, regulatory obligations, and board-level oversight. The emphasis is shifting from reactive remediation to proactive resilience and long-term risk management.

This is particularly relevant within the evolving regulatory landscape. In Europe, the Digital Operational Resilience Act (DORA) introduces heightened expectations around ICT risk management, operational resilience testing, incident reporting, and third-party oversight for financial entities and certain technology providers. Even where private equity firms are not directly regulated, portfolio companies operating within the financial ecosystem — or supporting regulated entities — may fall within scope. Regulatory scrutiny of cyber governance is increasing, and investors are expected to demonstrate oversight and accountability.

For private equity firms, integrating cybersecurity early in the investment lifecycle reduces hidden liabilities, minimises post-acquisition remediation costs, and strengthens exit readiness. Mature cybersecurity governance can also enhance buyer confidence, particularly in sectors subject to PCI DSS, data protection requirements, or financial regulation.

Cybersecurity is no longer a peripheral technical concern. It is a material investment risk and a strategic value driver. Firms that treat it as such are better positioned to protect portfolio value, demonstrate regulatory awareness, and support sustainable growth.

Source: Forbes – Risky Business: Integrating Cybersecurity Into Private Equity Strategy
https://www.forbes.com/councils/forbestechcouncil/2026/02/18/risky-business-integrating-cybersecurity-into-private-equitys-endtoend-strategy/