Ripple effect: digital supply chain concentration
21.10.2024 – Articles
As private equity firms double down on sector-focused investment strategies, thanks to today’s reliance on expansive digital infrastructures, a cyber breach at one external vendor or service provider in this complex digital supply chain can have devastating effects on an entire portfolio.
PrecilCorp, a leading manufacturer of specialised industrial sensors and control systems, fell victim to a sophisticated ransomware assault by a state-sponsored Russian hacking group. The attack encrypted the company’ design files, production systems, and supply chain management software, bringing its operations to a grinding halt. Unable to produce its cutting-edge components, PrecilCorp was forced to cease all deliveries to its numerous clients in the advanced manufacturing sector.
Despite not being an investor in PrecilCorp, private equity firm Hudina Partners, with several of its portfolio companies in the advanced manufacturing space heavily relied on PrecilCorp’s sensors and control systems for their automated production lines.