New Ocorian research highlights rising regulatory pressure, talent shortages, and growing reliance on trusted compliance partners
Venture capital and mid-market private equity firms in the U.S. and Canada are increasingly focused on the regulatory risks posed by cybersecurity and artificial intelligence, according to new research commissioned by Ocorian, a global asset service provider.
The study, based on insights from senior executives overseeing a combined US$335.25 billion in assets under management, found that 75% of respondents view cybersecurity and data protection compliance as the biggest technology-related challenge their firms will face over the next two years. This concern outpaces AI governance and compliance, which was cited by 60% as a major risk area as firms accelerate adoption of AI-driven tools.
“Cybersecurity and AI governance are no longer emerging risks—they are defining challenges for VC and private equity firms.”
— Howard Nurtman, Head of U.S. Regulatory and Compliance, Fund Solutions, Ocorian
People-related challenges are proving equally pressing. More than six in ten respondents (61%) identified recruiting and retaining qualified compliance professionals and navigating regulatory complexity in offshore jurisdictions as their most significant operational pressures. Integrating new technologies with legacy systems was flagged by 58%, while over half pointed to the rising costs of compliance platforms, RegTech tools, and evolving digital infrastructure regulations.
The research also highlights heightened regulatory scrutiny. Around 42% of firms said increased SEC enforcement and the need for independent oversight would be a major challenge, while nearly half cited the cost of internal compliance resources as a growing burden.
When selecting external compliance or technology partners, industry reputation emerged as the most important factor, chosen by 49% of respondents—well ahead of cost, which ranked at 28%. Integration capability, customization, and a strong regulatory track record also ranked highly, reflecting a shift toward resilience and credibility over price-driven decisions.
The findings underscore a broader trend: as compliance risks become more complex and technology-driven, VC and PE firms are prioritizing experienced partners who can deliver regulatory fluency, scalable solutions, and long-term confidence in an increasingly scrutinized environment.