Third-party administrators for alternatives managers are double- and triple-checking their cyber defenses following revelations that two firms in the past six months have been hit by hackers.
Sources would not name the firms that were subject to email phishing but said both attempts were thwarted before any information was accessed.
Despite their lack of success, the attacks raised red flags for an industry that has worked behind the scenes in investment for years. With asset owners boosting their allocations to private equity, real estate and hedge funds, administrators have seen an increase in both business and in the information they hold.
Fund administration is “pretty well known now with the shift over the last 15 years by private equity firms and hedge funds to outsource their back office,” said Chad Burhance, CEO of NewOak Credit Services, a New York fund administration firm targeting private credit. “People who know finance are aware
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