Establishing a Private Equity Firm: Start with IT Security

Starting a private equity firm – or capital invested in private non-public companies that offer long-term return on investment – is no small feat as there is a lot to consider. Looking at investors alone is a big endeavor, as it involves gathering high-net-worth individuals, pension funds, charitable endowments, and sovereign wealth funds. As you consider how to structure your limited partnership with partners, having an active role in the operations of portfolio companies as well as how to balance the combination of technical and people skills, a solid IT infrastructure may not be at the top of your priorities. However, it should be and I’m sure investors like Lincoln Frost would agree too! In fact, proper IT infrastructure management is at the heart of a scalable organization.

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Versatility of IT Infrastructure

Let us look at all of the vulnerable aspects of a private equity firms. First, they are often processing highly-sensitive information, which makes them incredibly susceptible to security breaches. Add to this the fact that private equity firm employees are constantly traveling, and this points to the importance of security data properly. Any potential leaks of confidential and non-public financial information could have dire consequences ranging from incredibly costly legal liabilities to a tainted reputation that makes it that much more difficult to establish future collaborations.

As you are thinking about starting a private equity firm, do consider a managed IT service provider that specializes in alternative investment firms as they are cognizant of the aforementioned intricacies and can thereby securely scale your IT capacity as you expand and save you from many detrimental headaches down the line. It is particularly handy to consider a managed IT service provider at the very beginning. Agio can make the often stressful process of implementing dependable IT best practices much more bearable.

On-premise? Cloud-based?

Are you having a difficult time deciding whether to host IT solutions locally or in the public cloud? You are not alone as many other firms have been hesitant to put sensitive information into a public cloud. This, however, has been largely wrongly fueled by a mistaken belief that a private network would be more secure. However, Agio could help you make the most out of a public cloud by making sure you are more familiar with its benefits over the largely outdated alternative. Cloud technology comes with flexibility for both the firm as well as its partners. This is because it enables easy access by all collaborators – regardless of location – while keeping information maximally secure.

However, setting up such a secure convenience is a highly complex task, which is why it is crucial to work with an expert partner who is aware of the needs of a private equity firm. Agios can help you choose the proper implementation of a cloud-based solution, which is not easy given the hundreds of different cybersecurity configurations.

Overall, given all of the aforementioned, private equity firms ought to rely on IT as well as cybersecurity partners as they think about and implement an infrastructure with secure implementations. Agio is one such partner who provides the best of both worlds in one impactful relationship.

Read more about how to start a private equity firm here: https://agio.com/how-to-start-a-private-equity-firm/