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Cybersecurity deals soar, as Google buys Mandiant and the PE-led buyout of McAfee closes

Cybersecurity is top of mind this am.

Good morning, Hubsters. MK Flynn here with today’s PE Hub Wire.

Cybersecurity is top of mind this morning, as the world worries that cyberattacks will increase in the wake of Russia’s invasion of Ukraine. Yesterday, the SEC continued its push for more disclosure of breeches, and cybersecurity was an important aspect of the executive order President Biden signed requiring federal agencies to review of their policies related to cryptocurrencies and other digital assets.

On a personal level, this week I received a notice from a former employer informing me of a breach that occurred months ago that may have revealed identity information about my family members and me.

Dealmaking in the arena is soaring. On Tuesday, Google announced it is buying Mandiant, a company that specializes in tracking the activities of hackers, for $5.4 billion. When the deal closes, Mandiant will join Google Cloud.

“Organizations around the world are facing unprecedented cybersecurity challenges as the sophistication and severity of attacks that were previously used to target major governments are now being used to target companies in every industry,” said Thomas Kurian, CEO, Google Cloud.

Earlier in the month, a huge private equity-backed cybersecurity deal closed. On March 1, an investor group led by Advent and Permira completed the $14 billion buyout of cybersecurity pioneer McAfee. Other firms that participated include Crosspoint Capital Partners, Canada Pension Plan Investment Board and GIC Private Limited.

The level of dealmaking in the sector is unprecedented. Last year, cybersecurity M&A deals totaled $77.5 billion, and PE and VC investments totaled $29.3 billion, according to Momentum Cyber’s Cybersecurity Almanac 2022.

We expect to see many more PE-backed cybersecurity deals ahead.

Women’s History Month. In the Wire throughout March, we’re highlighting the dealmakers PE Hub and Buyouts named Women in private equity: The class of 2022.

Today, let’s take a look at Rachel Arnold, senior managing director, Vista Equity Partners, profiled by Iris in our special report.

“As co-head of Vista Equity Partners’ Endeavor fund, Rachel Arnold is proof positive that a career in private equity investing is not based on a one-size-fits all approach,” Iris writes. “After almost two decades in the Vista ecosystem at four different portfolio companies and as an operations partner at the firm, Arnold helms one of the largest women-led tech buyout funds in the world. And she has done it in a way that provides inspiration to women early in their private equity careers.“

Last March, Arnold was promoted to senior managing director and co-head of Vista’s Endeavor Fund. Currently, she sits on the boards of Dispatch, Kazoo, RadarFirst, TripleSeat and Zapproved. She’s played an active role in investments including AGDATA, Autotask, BigMachines, Bullhorn, Kibo, Lanyon, Lone Wolf, Relias Learning, SecureLink and Social Solutions.

What advice does Arnold have for young women interested in a career in private equity?
“Regardless of gender, really understand and find what you love about working in private equity, evaluate why you’re doing this and how it contributes to meaningful outcomes and find that alignment of values with the organization and your teammates,” she says. “For females specifically, I think seek out role models and mentors to help you navigate your career.”

For more, read the whole report, in which we profile 10 stellar dealmakers.

That wraps up the column for today.

Until tomorrow,
MK