Goldman Sachs Invests $125M Fortress Information Security
April 22, 2022
Fortress received a $125 million strategic investment from funds managed
by the Private Equity business within Goldman Sachs. This new investment
will support Fortress's mission of securing U.S. critical industries
from cybersecurity and operational threats emanating from their supply
chains. Existing investors, including co-founders Peter Kassabov and
Alex Santos, ClearSky, First Analysis, American Electric Power, Caron
Capital, KMMT, and Moquin Capital, will continue to support Fortress as
Fortress is transforming how critical industry operators and government
agencies secure their supply chains in the face of increasing supply
chain cybersecurity threats. Founded in 2015, the Fortress platform is a
deep, fit-for-purpose solution that enables customers in critical
industries to assess, manage, and address risks associated with vendors,
assets, and software in their supply chains. Fortress enhances
cybersecurity postures and compliance with relevant regulations. The
Fortress solution was co-developed with leading electric utilities and
has since grown into a consortium tool that includes five of North
America's ten largest investor-owned utilities. Fortress's platform
secures 40% of the U.S. power grid, substantial national defense-related
assets, and critical manufacturing industries.
As critical industries increasingly face cybersecurity threats emanating
from the supply chains that underlie them, federal government and
private sector stakeholders have recognized that securing critical
supply chains is a national security issue. In response, authorities
such as the Cybersecurity and Infrastructure Security Agency (CISA) and
the North American Electric Reliability Corporation (NERC) have released
supply chain cybersecurity guidelines in the past year.
"Supply chain cybersecurity is one of the most important challenges
facing business and government leaders today. Supply chains represent a
source of significant threats to the national economy and our ability to
maintain our way of life," said Peter Kassabov, executive chairman and
co-founder of Fortress. "We started Fortress because we recognized major
supply chain vulnerabilities in our country's most critical industries.
Many recent high-profile breaches have spawned a new wave of regulatory
action in the U.S. that will likely expand for the foreseeable future."
"The Goldman Sachs investment validates the hard work of our employees
and clients who have brought collaborative cybersecurity to life," said
Alex Santos, Fortress CEO and co-founder. "This growth capital infusion
will empower us to accelerate the execution of our vision of resilient
"Fortress has established itself as a market
leader in end-to-end supply chain cybersecurity solutions for U.S.
critical industries and we look forward to scaling the company's
Asset-to-Vendor network, which provides significant value to critical
infrastructure suppliers and customers," said Will Chen, managing
director within Goldman Sachs Asset Management. "The depth and breadth
of the Fortress platform are unmatched and we believe there is a
meaningful opportunity to accelerate the expansion of the platform into
compelling product adjacencies, including software and hardware bill of
materials, workflow orchestration, and additional analytics and
Foley & Lardner LLP acted as legal advisor, and DBO Partners acted as
financial advisor to Fortress. Goodwin Procter LLP acted as legal
advisor, and Goldman Sachs & Co. LLC served as financial advisor to
Goldman Sachs Asset Management.
Further terms of the transaction were not disclosed.