Private Equity Security Services

Security issues in portfolio companies create liability, destroy value, and complicate exits. We help PE firms conduct security diligence, strengthen portfolio company security postures, and prepare investments for successful exits.

Security Due Diligence for Investments

Pre-Acquisition Security Assessment

Security diligence identifies risks that affect deal terms, integration costs, and ongoing liability exposure. We evaluate target companies across critical dimensions:

Technical Security Posture:

Cloud infrastructure security and configuration
Application security and development practices
Data protection and encryption
Access controls and identity management
Vulnerability management and patching

Compliance & Regulatory:

Compliance certification status (SOC 2, ISO 27001, HIPAA, PCI)
Regulatory requirements and gaps
Data privacy compliance (GDPR, CCPA)
Industry-specific requirements

Operational Security:

Incident response capabilities
Security monitoring and detection
Vendor and third-party risk
Business continuity and disaster recovery

Organizational Factors:

Security team capabilities and gaps
Security governance and accountability
Security culture and awareness
Budget adequacy for security needs

Deliverables include risk-prioritized findings, remediation cost estimates, and recommendations for deal terms or holdbacks. We help you understand what you're buying from a security perspective.

Strengthening Portfolio Company Security

Post-Acquisition Security Improvement

After acquisition, we help portfolio companies improve security posture:

Immediate Priorities (30-90 Days):

Address critical vulnerabilities identified in diligence
Implement essential controls (MFA, endpoint protection, backup/recovery)
Establish security governance and accountability
Develop incident response capabilities

Program Development (3-12 Months):

Build security programs appropriate for company maturity
Achieve compliance certifications required by customers
Implement security monitoring and detection
Develop vendor risk management programs

Ongoing Support:

Fractional CISO services for security leadership
Compliance maintenance and audit support
Security program optimization
Board-level security reporting

We help you build security programs that protect investments and support growth, not just checkbox compliance.

Portfolio-Wide Security Governance

Establish Consistent Security Standards

For firms with multiple portfolio companies, we help establish governance frameworks:

Portfolio-wide security standards and baselines
Centralized security assessment and monitoring
Shared security services and tools (where appropriate)
Board reporting templates and metrics
Cross-portfolio security benchmarking

Effective governance reduces risk across the portfolio while respecting each company's operational autonomy.

Exit Preparation

Security That Supports Valuations

Security issues discovered during buyer diligence create value destruction - reduced multiples, holdbacks, or failed transactions. We help prepare portfolio companies for successful exits:

Assessment & Remediation:

Conduct exit-ready security assessment
Identify and remediate issues likely to concern buyers
Document security program and controls
Prepare responses to standard security diligence questions

Compliance Positioning:

Achieve or maintain required certifications
Address regulatory compliance gaps
Document data handling and privacy practices
Prepare vendor security documentation

Transaction Support:

Support buyer security diligence process
Provide security documentation and evidence
Respond to technical security questions
Address buyer concerns and remediation requests

Exit-ready security supports valuations and reduces transaction risk.

Is This Right for Your Situation?

You're experiencing these challenges:

• Need security due diligence for potential investments
• Portfolio companies lacking security programs or leadership
• Portfolio companies losing enterprise deals due to security concerns
• Need to prepare portfolio companies for SOC 2 or compliance
• Portfolio company needs security program to support growth
• Preparing portfolio company for exit and buyer due diligence

You're at this stage:

• Pre-investment due diligence phase
• Recently acquired portfolio company (0-12 months post-close)
• Growth-stage portfolio company (building enterprise sales)
• Portfolio company requiring compliance certification
• Pre-exit portfolio company (6-18 months before planned sale)
• Managing portfolio-wide security across multiple companies

How We Support PE Firms and Portfolio Companies

Investment Due Diligence

Rapid security assessment of target companies (2-4 weeks), risk quantification, remediation cost estimation, and board-ready reporting to inform investment decisions.

Post-Acquisition Security Leadership

Fractional CISO services for portfolio companies providing strategic security leadership, program building, and hands-on implementation without full-time overhead.

Compliance Enablement

Help portfolio companies achieve SOC 2, ISO 27001, HIPAA, or other compliance certifications required for enterprise sales and customer requirements.

Security Program Foundation

Establish fundamental security programs including policies, access controls, vulnerability management, incident response, and security monitoring for portfolio companies.

Exit Preparation

Pre-exit security assessment, security debt remediation, documentation preparation, and due diligence response planning to maximize exit value and reduce deal friction.

Portfolio Governance

Portfolio-wide security benchmarking, board-level reporting, security playbook development, and knowledge sharing across portfolio companies.

Common Questions About PE Security Services

How does security affect portfolio company valuations?

Security issues create valuation risk in multiple ways: direct remediation costs, compliance gaps that limit market access, incident history that concerns buyers, and organizational weaknesses that affect growth potential. Conversely, strong security postures can differentiate portfolio companies and support premium valuations, especially in sectors where customers prioritize security.

What security diligence should we conduct before acquisitions?

Comprehensive diligence should cover technical security (infrastructure, applications, data protection), compliance status (certifications, regulatory requirements), operational capabilities (incident response, monitoring), and organizational factors (team, governance, culture). Depth depends on deal size, target industry, and risk tolerance. We tailor diligence scope to your specific requirements.

How do we establish security governance across a portfolio?

Effective portfolio governance balances standardization with operational autonomy. Establish baseline security requirements appropriate for portfolio company maturity, implement regular security assessments, create reporting mechanisms that give visibility without micromanagement, and provide shared resources where economies of scale benefit the portfolio. We help design governance frameworks that work for your investment thesis and operating model.

What's the timeline for improving portfolio company security?

Timeline depends on current posture and target state. Critical issues identified in diligence should be addressed in 30-90 days. Building a mature security program typically takes 6-18 months depending on company size and compliance requirements. Exit preparation should begin 12-24 months before anticipated transaction to allow time for remediation and certification.

Ready to Strengthen Your Portfolio?

Let's discuss how we can help with due diligence, portfolio company security, or exit preparation.

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