Cyber Resilience as a Strategic Advantage in Alternative Investments
By Eric Bernstein, CEO, Drawbridge
We continue to see the topic of cybersecurity move from the back office to the investment committee. What was once a compliance obligation is now a defining factor in investor trust and capital allocation. For alternative investment firms, cyber resilience has become a measure of operational integrity and a core driver of confidence.
The shift is both cultural and commercial. Allocators no longer ask whether managers have a cyber program. They ask how it is measured, monitored and improved. They want to see data – real metrics that demonstrate maturity over time. In other words, they expect cybersecurity to be run with the same discipline as any other investment strategy: transparent, evidence-based and accountable.
The investor lens: Confidence through clarity
Investors now view cybersecurity as a proxy for governance quality. A firm’s ability to demonstrate cyber maturity – through structured assessments, peer benchmarking and continuous reporting – can directly influence the outcome of operational due diligence.
At Drawbridge, we see this every day. Firms that can clearly articulate their cyber posture, quantify their progress, and benchmark against peers raise capital faster and face fewer obstacles in reviews. Metrics such as the Drawbridge Cyber Score have become a new currency of trust, helping both managers and investors speak the same language about risk and resilience.
The strategic opportunity
Treating cybersecurity as a compliance exercise may tick boxes but it doesn’t build confidence. The firms that lead the market are those that have integrated cyber governance into their operating model and investor communications. They use independent intelligence, validated scoring and consistent benchmarking to prove – not just assert – resilience.
When cyber becomes measurable, comparable and reportable, it moves from the server room to the boardroom. It becomes a strategic tool: one that enhances reputation, accelerates fundraising and supports valuation across portfolios. Independence is critical here. Investors place greater trust in firms whose cyber programs are assessed by conflict-free specialists, not by their own IT providers.
The road ahead: Cyber as continuous assurance
As regulatory scrutiny increases and attacks grow more sophisticated, leading firms are embracing cyber as a form of continuous assurance. They’re embedding it into quarterly board packs, investor letters and ESG disclosures.
They’re applying consistent oversight to portfolio companies and third-party vendors.
And they’re using credible, data-driven benchmarking to track improvement across time.
This isn’t about perfection. It’s about transparency and control – demonstrating to every stakeholder that resilience is a permanent part of the firm’s DNA.
A call to lead
Cyber resilience has become inseparable from fiduciary duty. In a market where reputation, data and performance are intertwined, investors will reward managers who treat cybersecurity as an investment in trust, rather than an insurance against risk.
At Drawbridge, we believe the future belongs to those who raise their guard not because they must but because they understand the confidence it creates.
