Private Equity and M&A

Portfolio Benchmarking and Technical Due Diligence

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Cybeta Solutions

Protecting Portfolio Value Through Risk Visibility and Threat Mitigation

Private equity companies are often targeted by cyber criminals due to the lack of visibility, control, and consistent tools to monitor cyber risks across their holdings. This can result in magnified breach losses and a damaged reputation, making it difficult to raise capital and secure future deals. However, with Cybeta PE, an analyst-driven intelligence solution, these risks can be minimized.

Cybeta PE offers three key objectives for your portfolio: risk visibility, value protection, and threat mitigation. By analyzing pre- and post-close investments, aligning to compliance requirements, measuring cyber investment ROI, assessing affiliate risk across the portfolio, estimating losses for insurance coverage, and mitigating threats through analyst-generated roadmaps, Cybeta PE provides comprehensive protection throughout the investment lifecycle.

With Cybeta PE’s reporting, private equity companies can effectively manage risks and mitigate threats to protect portfolio value. By utilizing this powerful tool, private equity companies can ensure that their investments are secure and their reputation remains intact.

Cybeta PE Key Features Include:

Baseline Enterprise Cyber Risk

We offer a comprehensive solution to assess portfolio risk through a non-invasive external examination that accurately determines which investments require more attention and which ones pose relatively less risk. Our signature low-touch approach requires zero connectivity, ensuring the utmost privacy and security for clients.

Benchmarking & Trend Analysis

We provide over 20 security benchmarks that rank performance on a fund-by-fund and portfolio basis. This is used to reduce deal risk and can be used to demonstrate security maturity to external stakeholders and can result in higher exit multiples.

Breach Calculation for VaR, ROI, & Insurance

We calculate the impact of cyber risk scenarios on the entire portfolio and individual investments. This can determine the value at risk and ROI of your security spend and is ideal for understanding cyber insurance coverage.

Internal Security Capabilities

Our data science experts assessed thousands of insurance survey questions to find top company responses correlating to robust internal defensive capabilities. This generated a simpler process to assess portfolio security and benchmark those responses to other investments.

Vendor Risk Assessment

We assess inherited risk by analyzing vulnerabilities within vendor network footprints and rank them based on severity and impact. This can be used to better understand dependencies, track improvement, and increase leverage during negotiations.

Prioritized Remediation Roadmap

Our methodology provides recommendations prioritized by their impact on the entire portfolio. This includes a highlighted list of improvements a fund manager can implement at scale.

Threat Hunting & Intelligence

Relying on outdated cyber due diligence reports can miss emerging threats. We examine complex adversary infrastructure and patterns in the deep and dark web to identify actionable intelligence that could lead to a cyber risk scenario impacting your portfolio investment.

Your Dedicated Analyst

Cybeta PE is differentiated by our team of real security practitioners. Our analysts share their findings and insights through live readouts to CFOs, operating partners, boards of directors.

Cybeta PE Offerings

Your General Partner for the Investment & Fundraising Lifecycle

One breach can undermine the partnership’s overall returns and reputation. Conducting comprehensive cyber due diligence is important to avoid introducing avoidable security risks into your portfolio. Cybeta PE can help you to discover how those risks compare to the existing portfolio benchmarks across the industry.

Pre-Deal Due Diligence

Prior to making any new investment, it is crucial to assess the potential cybersecurity risks that may be introduced into your portfolio. Conducting a thorough cybersecurity due diligence assessment involves benchmarking existing portfolio risks and developing a comprehensive plan to mitigate any potential threats.

Post-Deal Investment

It is crucial to follow a well-defined roadmap to mitigate risks after a deal has been closed. However, it is equally important to do so within a reasonable budget and timeline to maximize investment returns. Our comprehensive due diligence and company-specific reports provide the necessary details to ensure swift and thorough improvements for new investments.

Manage Growth

In today’s dynamic business landscape, threats can evolve at an alarming pace. Therefore, it is crucial to conduct regular portfolio assessments to ensure that your investments remain within your risk tolerance. Rather than leaving risk decisions to individual portfolio companies, prioritizing portfolio-wide investments can yield the highest return on investment.

Exit and Harvest

In any business transaction, be it a carveout, IPO, merger, or any other type of investment, it is crucial to showcase that cybersecurity risks have been thoroughly assessed and mitigated. This will ensure that potential cyber threats have been avoided, and that the investment is secure. By maintaining a lower-risk posture, investors can expect to achieve better exit multiples and overall returns.

Fundraising

By seeking validation from a reputable third party, you can effectively showcase to potential capital suppliers that your fund and investment strategy possess a lower risk profile. This, in turn, can lead to accessing capital at a reduced cost, ultimately resulting in higher returns.

Cybeta PE Features Can Also Provide:

Cybersecurity Maturity Assessment

Companies cannot prevent every breach or transfer all their financial risk. We incorporate a “trust but verify” approach to determine a company’s capabilities that reduces any potential for bias when understanding a network environment and any ingress points a threat actor could exploit.

Cybersecurity Compliance Certification

Compliance is a major resource investment that can improve security capability while also signaling that your portfolio is in safer hands. Cybeta PE provides access to a real-time, flexible, and automated compliance platform to pursue certifications like ISO, FedRamp, SOC2, NIST, and GDPR.

Incident Response Planning

The longer it takes to recover from an incident the greater the potential disruption to your critical business functions. Cybeta PE assists incident response planners by identifying designated management roles and defines response and communication processes that can reduce the confusion and missteps during a material event.

Private Equity

Our Methodology

Cybeta PE employs a comprehensive five-step process to aid fund managers in comprehending their risk and safeguarding their assets. Our approach is straightforward yet thorough, ensuring that our clients receive the best possible guidance.

STEP 1

Information Gathering

During this phase, Cybeta PE gathers crucial information to conduct a comprehensive cybersecurity analysis. This includes verifying holdings and investment sizes, as well as assessing internal security capabilities. Our team meticulously collects and analyzes all relevant data to provide our clients with a thorough and accurate report.

STEP 2

Risk Visibility Analysis

Cybeta PE will perform an external assessment of portfolio threats with the aim of determining the level of risk associated with each investment or asset. This assessment will involve benchmarking cyber risks against other similar investments and assets, as well as examining how these trends change over time.

STEP 3

Value Protection

Once you have been identified risks, it becomes imperative to assess the potential damages, invest in suitable preventative and detective controls, and comprehend how cyber insurance can mitigate the impact of potential breaches on your investments. By quantifying the potential damages, you can determine the level of investment required to safeguard your assets.

STEP 4

Threat Mitigation

Cybeta PE generates prioritized lists of vulnerability mitigation strategies, ranks affiliates based on their level of risk, and delivers comprehensive threat analysis to minimize enterprise exposure.

STEP 5

Ongoing Support

As a valued client, you’ll have access to Cybeta’s team of expert PE analysts for personalized feedback and recommendations that may not be fully captured in a report. We encourage you to reach out to us at any time for assistance and guidance.

Cybeta generates predictive analytics about the likelihood of future cyber events while delivering actionable intelligence focused on pre-attack infrastructure, supply chain risk, and metric-driven technology intelligence. We are comprised of former national security professionals and data science experts who do not believe you can automate human expertise.

Office Locations

Chicago:
30 South Wacker Drive Floor 22
Chicago, IL 60606

Indianapolis:
12175 Visionary Way
Suite 880
Fishers, IN 46038

(779) 429-2382