Cybersecurity in the alternative investment funds industry

Cybersecurity in the alternative investment funds industry

Q&A with Nathan Ford from Drawbridge Partners
June 09, 2021

Cybersecurity in the alternative investment funds industry

Cybersecurity in the alternative investment funds industry

Q&A with Nathan Ford from Drawbridge Partners
June 09, 2021

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Cybersecurity and how a company reacts to threats are important in all industries, including the alternative investments space. Joe Christian with Wintrust Funds Group recently sat down with Nathan Ford from Drawbridge Partners, a cybersecurity software company, to discuss cybersecurity and share advice for those in the alternative investment funds space.

Joe Christian: Cybersecurity has been a topic of concern among alternative investment funds managers, regulators, and investors. What are you seeing those in the industry currently doing with cybersecurity?

Nathan Ford: At a very high level, funds managers are putting together a cyber program for the firm. We’re seeing this demanded by many investors and regulators.

Joe: What does a cyber program consist of?

Nathan: The areas in a cyber program that need to be addressed are protection of the technology, a plan on paper, and training across the team.

Joe: Can the client’s IT provider handle this work?

Nathan: Drawbridge Partners and many others, particularly limited partners, highly advise against that. You really want this done by a third party, otherwise your IT vendor is auditing itself. Also, technology and security are two separate functions today.

Joe: What are the most common breaches now?

Nathan: Ransomware and spearfishing. Bad actors ideally are looking for a vulnerability in the fund’s technology setup. They also look to get one of the employees to give away their admin credentials, which happens more frequently than many people think.

Joe: What advice to do you have for alternative investment funds?

Nathan: Implement a program that is the right size for your business. Cybersecurity is not a “one size fits all” service. There is a belief out there that cybersecurity costs a fortune, but it doesn’t have to if you align yourself with a firm that works with similar sized clients.

The Wintrust Funds Group is a national niche group with offices in Chicago and New York, comprised of industry experts with an average of 20 years of experience in financial services, focused on providing alternative investment banking solutions. While many of our competitors have been inconsistent in their commitment to this industry, we have continued to remain focused by providing our services with a high touch client service experience at a reasonable cost.

To find out how we can help your business, please visit wintrust.com/funds.

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