Private equity circles cyber security as AI-driven threats and defence fuel ETF surge

InvestorDaily

Private equity investors are piling into the booming cyber security sector, with record levels of undeployed capital chasing opportunities alongside heightened demand from governments and corporates, fuelling strong ETF performance and global investment growth. Cyber security has cemented itself as a structural investment theme, with global spending forecast to climb up to US$377 billion by 2028, with specialist exchange-traded funds (ETFs) delivering strong returns, according to ETF provider Betashares. Speaking to InvestorDaily, investment strategist at Betashares, Hugh Lam, said demand for security solutions has accelerated as geopolitical tensions and AI advancements reshape the risk landscape.

“Cyber security remains a strong, structural investment thematic as ongoing geopolitical tensions creates a backdrop of uncertainty among businesses, government and individuals all across the world,” Lam said. “This has only been accelerated by advancements in AI technologies which are then exploited by adversaries to attack critical network systems and networks. “Together, these developments have driven global security spending higher over recent years and is forecast to reach US$377 billion in 2028 – an amount which is not only large in magnitude but is highly defensible in nature.”

The rest of this article can be found at investordaily.com.au.