Locked and Secured: Safeguarding Digital Assets in Private Markets

Capcade Inc.
5 min readJul 10


In an increasingly digital world, private markets are rapidly evolving. Digital assets ranging from sensitive financial information to proprietary investment algorithms form the backbone of these markets. Consequently, the importance of robust cybersecurity measures in protecting these digital assets is paramount.

The Digital Evolution in Private Markets

The transformation within private markets is significant. Outdated practices such as physical data rooms have been replaced with digital deal rooms, online investment platforms, and sophisticated data analytics. These digital advancements have dramatically increased efficiency and opened up new opportunities. However, the growing reliance on digital technologies has also heightened the potential risk from cyber threats.

Cyber Threats in Private Markets

Cyber threats are varied, ranging from sophisticated phishing attempts to ransomware attacks and unauthorized data breaches. Recent incidents have demonstrated that private markets represent attractive targets for cyber criminals. The MOVEit Transfer software vulnerability exploited by the Clop ransomware gang resulted in over 100 infiltrated organizations, including Datasite, a provider of data sharing platforms and encrypted data rooms. This breach potentially exposed a large amount of sensitive data.

Moreover, the SolarWinds hack in late 2020 demonstrated the broad reach of cyber threats, affecting numerous government agencies and private corporations globally. Such incidents can lead to significant financial losses, reputational damage, and potential legal complications, all emphasizing the critical need for enhanced cybersecurity measures.

Managing Third-party Risks

The digital frontier in private markets is expanding, and with it comes a myriad of connections with external entities. Third-party risk management is not just an add-on; it’s a necessity. When engaging with external partners, it’s essential to recognize that your cybersecurity is as strong as the weakest link in your chain.

Why the emphasis on third-party risk management? Simply put, the security mishaps of your partners can become your nightmare. In a landscape where compliance and protection of digital assets are paramount, ensuring your partners don’t inadvertently provide a backdoor to your data is critical.

Addressing this requires vigilance and proactive measures. Initial due diligence in vetting a third-party’s cybersecurity credentials is a must. But what happens post-onboarding? Continuous monitoring and regular assessments of their security posture are just as vital.

Harnessing technology can streamline this process. Automate your third-party risk management where possible, ensuring that you are not just setting and forgetting but actively ensuring that the chains that bind you to your partners are made of steel, not straw.

In essence, locking the vault in private markets means not only guarding your treasure but ensuring that your allies do the same.

Best Practices in Cybersecurity for Private Markets

It’s essential for organizations to adopt a multifaceted approach to safeguard their assets. Following best practices in cybersecurity are critical for reinforcing security measures and protecting digital assets.

  • Data Encryption and Secure Communication Channels: Encryption turns sensitive data into unreadable text, accessible only by authorized individuals. Secure communication channels further ensure the safe transmission of information.
  • Regular Security Audits and Penetration Testing: These procedures verify that the security controls in place are functioning correctly and identify vulnerabilities before they can be exploited.
  • User Education and Training: Often, breaches occur due to human error. Comprehensive user education and training can drastically improve an organization’s overall security posture.
  • Incident Response and Disaster Recovery Plans: Having robust response and recovery plans ensures swift action in the event of a breach, helping to minimize damage.

Navigating the Maze of Regulatory Compliance and Standards

Regulatory compliance and industry standards form a set of guidelines ensuring a safe and secure cyber environment. For instance, the General Data Protection Regulation (GDPR) mandates stringent data protection requirements for organizations dealing with the personal data of EU residents. Non-compliance can result in severe financial penalties.

In the United States, organizations dealing with credit card information must adhere to the Payment Card Industry Data Security Standard (PCI DSS). Also, the New York Department of Financial Services (NYDFS) Cybersecurity Regulation demands that financial services companies implement specific policies and procedures to protect customer information.

Adherence to recognized cybersecurity frameworks, such as ISO 27001 or the NIST Cybersecurity Framework, is also crucial in establishing a comprehensive cybersecurity program. These standards provide a roadmap for improving an organization’s ability to prevent, detect, and respond to cyber-attacks.

Partnering for Peace of Mind

Capcade, for instance, sets a commendable example in this arena. With banking-grade security, and a stellar compliance record including GDPR, SOC II, ISO 27001 and 9001, CCPA, and Privacy Shields, Capcade demonstrates that excellence in cybersecurity is multifaceted.

This not only encompasses cutting-edge technology but also unwavering commitment to continual evaluation and improvement of security protocols, and adherence to international standards. In an industry where security and data protection are paramount, it’s a commitment that not only safeguards assets but reinforces trust. Capcade illustrates the powerful synergy of technology and compliance — a benchmark that private markets companies can rely on.

Entrusting cybersecurity to experienced industry partners and service providers can significantly enhance an organization’s defences, serving as invaluable allies in the fight against cyber threats.

Anticipating Future Cyber Threats

The future of cybersecurity lies in proactive rather than reactive measures. As cyber criminals continue to develop more sophisticated strategies, it is essential to anticipate potential threats and adapt security measures accordingly. For instance, the increasing use of artificial intelligence and machine learning in cyber-attacks necessitates corresponding advancements in cybersecurity.

As blockchain technology becomes more prevalent, particularly in financial transactions, it is imperative to understand and safeguard against potential security vulnerabilities within these distributed systems.

Continuous collaboration between industry experts, service providers, and regulatory bodies will be essential in shaping the cybersecurity landscape. Leveraging emerging technologies, such as quantum encryption and behaviour analytics, will also be vital in protecting against next-generation cyber threats.


The importance of cybersecurity in safeguarding digital assets within private markets cannot be overstated. Implementing robust security practices, partnering with industry experts, and ensuring compliance with relevant regulations and standards are crucial. Only through this multifaceted approach can trust be fostered and the integrity of private markets be maintained.



Capcade Inc.

Transaction Lifecycle Orchestration — manage loans, M&A, and real estate deals from origination to compliance, closing and portfolio management