Digital Assets: CPPIB Takes $113M Haircut On Investment In SolarWinds
The hack at SolarWinds was announced just days after CPPIB’s investment.
Around December 9, the Canada Pension Plan Investment Board (CPPIB), Canada’s largest pension fund, bought approximately 5% of Texas-based software company SolarWinds (NYSE: SWI) for $315 million from private equity firm shareholders Silver Lake and Thoma Bravo. The price was $21.97 per share of SolarWinds. A week later, news broke of the very sophisticated cyberattack on SolarWinds. The price of the stock fell to a low of $13.98, knocking off 36% of CPPIB’s investment. (CIO)
Question: Did someone know?
PE firms Silver Lake and Thoma Bravo claim they were ignorant of the hack attack when they sold the SolarWinds stock to CPPIB, according to a Washington Post report quoted by CIO.
“To the best of our knowledge, no one was aware of the hack leading to our capital commitment,” Michel Leduc, CPPIB’s senior managing director, said in a statement to the Washington Post.
Significantly, Leduc added that CPPIB is “always focused on the very best interests of the fund and we will continue to assess the circumstances for optimal certainty.”
Investigation in the offing
According to legal experts cited by the Post, the SEC may investigate whether any information was inappropriately withheld at the time of the deal.
SolarWinds could also be answerable for not heeding in 2017 a warning regarding cybersecurity risks from security adviser Ian Thornton-Trump.
According to a Bloomberg report, Thornton-Trump believed that a major cybersecurity risk was imminent and urged SolarWinds executives to hire a cybersecurity senior director.
Russia the likely culprit
Meanwhile, US intelligence and law enforcement agencies investigating the SolarWinds attack issued a joint statement Tuesday. They said the group responsible “likely originated in Russia” and the attack is believed to be an act of espionage rather than cyber warfare.
The agencies said that the actor, “likely Russian in origin, was responsible for most or all of the recently discovered, ongoing cyber compromises of both government and non-governmental networks.”
Latest Alternative Investment News
A lot of money from pandemic related stimulus measures appears to be sloshing around in the system. According to one opinion, some of that is headed for VC funds. TCV,…
Stilt provides loans and financial services to immigrants and people underserved by the banking system. The five-year old startup announced Wednesday its raise of $100 million as a warehouse lending…
Researchers at the University of Alberta developed an AI tool for predicting schizophrenia from brain scans of healthy close relatives (such as children or siblings) of persons suffering from the…
The numbers are out for the Wave BTC Income & Growth Digital Fund’s first full year of trading, and they’re impressive. The fund scored a 145.8% annual gain for its…