The Hedge Fund Association (HFA), in partnership with SeaGlass Technology, today announced the results of their 2025 Cybersecurity Survey, capturing insights from more than 400 hedge fund managers, institutional investors, and industry service providers. The findings reveal an industry accelerating investment in cybersecurity amid heightened regulatory scrutiny, sophisticated threat vectors, and persistent operational vulnerabilities.

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Significant Budget Growth Reflects Industrywide Urgency

According to the survey, 78 percent of firms increased their cybersecurity budgets in 2025, underscoring a broad recognition that cyber resilience is now inseparable from business resilience. Phishing remains the most commonly cited threat, named by 65 percent of respondents as their primary concern. As firms adapt to growing complexity in cyber risk, 42 percent plan to outsource key cybersecurity functions in the next cycle.

Evolving Operating Models Across the Sector

The survey reveals a diversified approach to cybersecurity management:

• 45% rely on in-house teams
• 40% use a hybrid structure
• 15% fully outsource their cybersecurity programs

Cyber Maturity Growing, but Gaps Remain

Respondents highlighted varying levels of maturity in areas such as adoption of cybersecurity frameworks, implementation of regular third-party audits, remediation timelines, frequency and quality of phishing and awareness training, and consistency of incident response planning.

Incident Trends and Regulatory Pressures

A meaningful portion of respondents reported experiencing a cybersecurity incident within the last 12 months. Many identified third-party vendors as contributors to those incidents, reinforcing the industry’s increased scrutiny of external partners.

Investment Priorities for the Next 12–24 Months

According to the survey, firms plan to increase investment in cybersecurity technologies that enhance threat detection, incident response, cloud and endpoint security, identity and access management, and automation to improve operational efficiency.

About the Hedge Fund Association

The Hedge Fund Association’s mission is to advance transparency, development and trust in alternative investments. HFA’s leaders are all elected and appointed volunteers that work on behalf of the entire alternative investment industry, including hedge funds, private equity, venture capital, real estate and wealth management firms, institutional investors, family offices and service providers.

About SeaGlass Technology

At SeaGlass Technology we specialize using our proprietary methodology and processes developed from our VCISO team and experienced tech teams approach to managing Hedge Funds IT & IT Cybersecurity.

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