The volume and frequency of transactions conducted by private equity firms often make them appealing targets of cyber threat actors at a time when the cybersecurity risk and regulatory landscapes are evolving globally. Additionally, the proliferation of cyber reporting obligations and the threat of a ransomware or other cyberattack disrupting a portfolio company growth plan places heightened emphasis on cyber and data privacy diligence as a growing factor in M&A dealmaking. Beyond their own preparedness strategies, PE sponsors face the challenge of mitigating the potential risks confronting their portfolio companies. Cyber resilience has quickly become a component PE firms must assess when considering investing in startups and mid-market companies.

Members of our Cybersecurity and Data Privacy Practice are known as go-to counsel to leading global PE sponsors and their portfolio companies, stepping in to serve as cyber counsel and incident commanders when ransomware or other disruptive cyberattacks occur. With more than 40 lawyers worldwide, our multidisciplinary and integrated practice serves as a global one-stop shop for PE sponsors’ and their portfolio companies’ cybersecurity, incident response, data protection, privacy and related AI challenges.

Our team has counseled companies on major cyber incidents and incident preparedness across virtually every industry, including financial, health care, real estate, energy, chemical, defense and aerospace, telecommunications and hospitality. Skadden’s Cybersecurity and Data Privacy Practice is strongly positioned to represent PE firms and their portfolio companies in addressing the distinct cyber risks and challenges at the forefront of this specialized industry. Additionally, team leadership routinely meets with PE CISOs, CIOs and CTOs and in-house counsel to discuss cyber trends and developments in the industry and identify risk management strategies involving cybersecurity, privacy and AI.

We work seamlessly with our Private Equity Group, which has a long history of representing sponsors, portfolio companies, target companies, financing sources and management teams in a variety of private equity transactions. With one of the largest, most experienced teams of transactional lawyers, we are uniquely positioned to handle any situation that may arise across the full spectrum of transactions. We ensure that financial sponsors benefit from the latest legal technology and our sophisticated understanding of market trends and regulatory developments.

PE Firms and Portfolio Company Capabilities

We create tailored teams to support PE clients and their portfolio companies on some of their biggest legal risk management challenges related to cybersecurity and data privacy. We also develop scalable tools to build the capacity of portfolio companies to manage cyber, privacy and AI risks internally. Our work includes:

• Cyber Incident Response Counseling and Breach Coaching
• Cyber Incident Response Plans, Playbooks and Related Policies
• Data Privacy Policies, Procedures and Playbooks
• War Games and Tabletop Exercises
• Regulatory Watch, Compliance and Gap Assessment Programs
• Litigation Counseling
• M&A Due Diligence
• Board and C-Level Guidance
• Vendor and Supply Chain Diligence
• Artificial Intelligence: Security and Privacy Compliance
• SEC Compliance and Reporting
• Tax Reporting

Learn more about Skadden’s Cybersecurity and Data Privacy Practice and professionals.