Excerpt from Insurance Business Article, Published on Mar 07, 2025.
Berkeley Research Group (BRG) has fallen victim to a cyber attack, with a hacker allegedly breaching its systems and encrypting files. The attack was identified on March 2, coinciding with efforts to finalize a $700 million leveraged loan sale supporting TowerBrook Capital Partners’ majority equity investment in Berkeley. According to Bloomberg, sources familiar with the matter stated that Berkeley received multiple ransomware notices from the hacker, who claimed to have accessed sensitive data. The extent of the breach and the type of compromised data have not been disclosed. However, Berkeley has engaged data-security firm Octillo Law and Booz Allen Hamilton Inc.’s cyber team to mitigate the impact. The company also confirmed it holds comprehensive cyber insurance to address potential financial losses.
The attack has raised concerns among investors, as banking groups, led by the Royal Bank of Canada, work to finalize the acquisition financing. Some investors fear potential disruptions to Berkeley’s business operations. Cyber threats are becoming an increasing concern for financial and corporate sectors, highlighting the importance of robust cybersecurity measures. Cyber insurance has emerged as a crucial risk management tool for businesses dealing with cyber threats. Such policies typically cover first-party losses, including data restoration and business interruption, as well as third-party liabilities like regulatory fines and legal claims. The cyber insurance market has expanded significantly as organizations seek protection against ransomware attacks, system disruptions, and liability risks.
Berkeley specializes in advisory services related to tax matters, arbitration, and bankruptcy procedures. The firm is currently assisting Forever 21 Inc. in preparing for a potential bankruptcy filing and previously advised furniture retailer Conn’s Inc. before its bankruptcy protection filing last year. As businesses like Berkeley face increasing risks, cyber insurance remains a critical safeguard against financial and operational disruptions caused by data breaches and ransomware incidents.
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