Cybersecurity has emerged as a top priority for investors during fundraising due diligence, with 27% of investors now focusing on digital security risks, according to the Core Alternative Managers’ Mood Index (Cammi) report by Gen II Fund Services.
The findings have highlighted a growing awareness of cyber threats in the private capital industry, as asset managers face increasing scrutiny over their security frameworks.
The Cammi report surveyed over 120 UK and European asset management firms between September and October 2024, reflecting investor concerns about the financial and reputational risks posed by cyber-attacks. With investment funds holding vast amounts of sensitive data, fund managers are under pressure to implement robust cybersecurity measures to protect assets and client information.
Regulators have also intensified their cybersecurity oversight, introducing stricter compliance requirements to safeguard the asset management industry, according to the researchers. As firms accelerate their adoption of digital technologies, investors are gravitating toward fund managers who demonstrate a proactive approach to cybersecurity, ensuring resilience against emerging threats.
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The report has also suggested that fund managers must adopt industry-leading security practices, invest in workforce training, and strengthen their cybersecurity defences to maintain investor confidence. As digital threats evolve, investors are increasingly assessing cybersecurity frameworks as a key factor in operational due diligence, influencing their fund allocation decisions.
The findings reinforced the growing intersection between cybersecurity and private capital, where fund managers who prioritise data security, risk mitigation, and regulatory adherence are better positioned to attract institutional capital. According to the researchers, the role of chief investment officers, CFOs, and compliance heads in shaping cybersecurity strategies is becoming more pronounced, ensuring firms remain competitive in a digitally driven investment landscape.
With investors and regulators aligning on cybersecurity expectations, the private capital sector must continuously enhance its digital defences to protect assets, maintain trust, and sustain long-term growth, shared the researchers.
The Cammi report surveyed 122 fund managers across Europe (52.8%) and the UK (47.2%), including investment directors (33.6%), CFOs (17.2%), CCOs (8.6%), COOs (8.6%), and other key executives.
By virtue of their resources, larger fund managers are better able to defend themselves from and educate their staff around cyberthreats, but smaller managers may not be sufficiently scaled to do so to the same degree. We see smaller managers in the space seeking increased support from their outsourced partners who can offer robust measures to safeguard their data and who invest in cutting edge technologies to safeguard against emerging threats.”
