Private capital firms are redefining how they create value. Cyber resilience has emerged as a critical differentiator, not just for defence, but as a tool to protect and enhance enterprise value, investor trust, and operational continuity.
Across the private capital sector, CFOs are assuming increasingly strategic roles, occupying a powerful intersection of governance, performance, and reputation. The stakes are high, and the message is clear: cyber resilience must be treated as a board-level priority.
Cybersecurity is no longer viewed as a back-office function, but as a strategic lever capable of influencing everything from valuation to regulatory compliance.
Cyber risk is a material investment concern
Private capital funds manage highly sensitive data and operate through complex networks of portfolio companies and service providers. A cyber incident in any part of that ecosystem can result in regulatory fines, operational disruption, reputational damage, and reduced valuations.
According to industry research, over half of private equity firms have experienced cyber incidents in up to 25% of their portfolio companies. This isn’t a peripheral concern; it’s a material threat to returns.
Mark Ward, former CISO in the telecoms sector, frames it this way:
“Investor and stakeholder confidence is increasingly shaped by a firm’s ability to manage emerging risks like cyber threats. Operational resilience is the bedrock of confidence during disruption, and CFOs play a central role in this by guiding planning and enabling transparency at the board level.”
How leading firms are embedding cyber into value creation
Firms like KKR, Bain Capital, and Permira have made it clear: cyber maturity is now fundamental to their investment strategy.
KKR states:
“Cybersecurity is a critical component of our investment thesis. We view it as integral to protecting and enhancing the value of our portfolio companies.”
At Bain Capital:
“We assess the cyber readiness of every potential investment and prioritise post-acquisition enhancements to strengthen resilience. This reduces risk while unlocking growth opportunities.”
Permira, Stirling Square, and CVC Capital Partners are following suit, embedding cyber protocols into operating models, integrating security into tech transformation programmes, and pushing for measurable maturity at the portfolio level.
What does this look like in the real world?
Portfolio-wide cyber risk management
A private equity firm with 70+ portfolio companies deployed a unified cyber risk framework. Through threat monitoring, executive workshops, and shared tooling, the firm achieved a measurable reduction in incidents and improved resilience across its portfolio.
Cyber maturity as an investment criterion
Adamantem Capital partnered with advisors to assess and uplift cyber practices across its investments. The initiative helped management teams prioritise improvements, align with board expectations, and create long-term resilience as part of financial growth.
Cyber resilience enables M&A readiness
An acquisition-focused portfolio company lacked robust cyber governance. Post-investment, the firm implemented a roadmap to build a secure foundation. As a result, it allowed for growth through secure acquisition, enhanced investor confidence, and avoided value erosion.
The CFO’s role
CFOs are uniquely positioned to drive this shift. As the bridge between financial strategy and enterprise risk, they must now bring cyber leadership to the boardroom.
Hadiseh Razaghdoust, CSO at Vocalink, notes:
“CFOs must view cybersecurity as integral to financial risk management and value protection. Boards and investors no longer tolerate cyber blind spots.”
Phillip Davies, CISO at Equifax, adds:
“Investors expect the CFO to lead on cyber assurance, ensuring alignment between financial planning, risk mitigation, and enterprise growth. Security investment must reflect business strategy.”
He outlines seven reasons CFOs are increasingly pivotal:
- CFOs sign off on security budgets.
- They enable cross-functional collaboration between finance, risk, and cyber teams.
- They oversee regulatory frameworks like SOX, SOC2, and anti-fraud policies.
- They are held accountable for resilience planning and reporting.
- Poor cyber investment directly affects M&A outcomes.
- A breach can derail enterprise value and investor confidence.
- CFOs must champion risk-informed decision-making at the board level.
As Mark Ward concludes:
“When CFOs address financial risk, reputation, compliance, and resilience in tandem, they shift from being finance leaders to strategic catalysts.”
A mandate for value creation
The future of private capital lies in technology, transparency, and trust. As digital transformation accelerates, cyber resilience will be the baseline from which value is protected and grown.
CFOs have a unique mandate, not just to oversee financial performance, but to champion resilience and strategic foresight in the face of risk. Those who lead on cyber today will be tomorrow’s outperformers.
About the Authors
James Fargus, Evolution Consulting Partners (JSS Group) and James Marklove, Intaso (JSS Group)
Together, James and James advise private capital firms on embedding cyber resilience into financial strategy. To join our upcoming CFO & Cyber Leadership Roundtable, or to explore how cyber maturity can unlock value in your portfolio, get in touch.
Statements from KKR, Bain Capital, and other firms are based on publicly available commentary. Case studies are adapted from anonymised real-world engagements.
