How To Start a Private Equity Firm – It Starts With The IT Infrastructure


Starting a private equity firm is no small task. There are literally a dozen different things that must be done in order for your project to be a success.

The first, and most important thing you need to do, is make sure you have a properly managed IT infrastructure in place.

Without this you will not be able to scale your organization.

When it comes to IT infrastructure, there is no one size fits all solution.

Private equity firms deal with highly sensitive information. This makes them vulnerable to a host of security breaches on an almost daily basis.

Because of this vulnerability, having adequate data security must be a top priority.

Keep in mind your firm will be able to access nonpublic information. Therefore, any potential leaks can have devastating consequences for your firm.

Some of the consequences include negatively impacting business valuations, millions in legal fees, and a lack of new clients.

The key is finding a managed IT service provider that specializes in alternative investment firms. They will have the skills and knowledge to help you securely scale your IT capacity as your company grows.

How To Start a Private Equity Firm – On-Premise VS. Cloud-Based

Once you have a properly managed IT infrastructure in place, your next biggest decision will be deciding whether to host your IT solutions on premise, or in the cloud.

Most private equity firms are hesitant to put sensitive information in the public cloud. They believe the private cloud is more secure, and therefore a better option.

This, however, is not the case.

Contrary to popular belief, the public cloud has a much lighter footprint than that of the private cloud.

The public cloud also provides a more secure connection to your network when you are away from the main location.

Having the infrastructure for a private equity firm be 100% on premise, would now be considered archaic.

Cloud technology is the present, and the future.

With it you will have the flexibility needed to quickly, and easily, access data from anywhere in the world.

And don’t worry. All of your data will be properly secured and maintained by technology giants such as Google and Amazon.

Setting Up a Secure Cloud-Based Solution

Setting up a secure cloud based solution is extremely difficult. There are hundreds of different cybersecurity configurations that must be properly configured.

When a cloud-based solution is not properly implemented, cloud breaches become the norm.

It is, therefore, of the utmost importance that all private equity firms work with an IT and cybersecurity partner who understands the needs of the firm. They will then set up the infrastructure to meet those needs.

Read more about what this firm NYC firm does to protect private equity firms from cyberthreats: Agio Private Equity

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