Private Equity Fuels a New Front in America’s Cyber Defense Strategy

NEW YORK, NY – December 08, 2025 – In a move that highlights a powerful trend at the intersection of finance and national security, private equity firm CM Equity Partners (CMEP) has made a significant investment in ShorePoint, Inc., a cybersecurity firm dedicated to protecting the nation's most sensitive federal agencies. The transaction, advised by the global law firm DLA Piper, is more than a simple financial deal; it represents a strategic infusion of capital designed to turbocharge a key player in America's ongoing battle against sophisticated digital adversaries.

This partnership arrives at a critical juncture. The U.S. government, facing an onslaught of cyber threats from state-sponsored actors and criminal syndicates, is aggressively modernizing its digital defenses. The investment positions ShorePoint to accelerate its growth and expand its capabilities, directly addressing the urgent need for enhanced cyber resilience across the federal landscape.

The Escalating Stakes of Federal Cybersecurity

The digital battlefield has never been more active, and the federal government is a primary target. In response, Washington has unleashed a wave of mandates and funding initiatives aimed at hardening its networks. The demand for vendor-supplied cybersecurity products and services is projected to soar from $17.4 billion in fiscal year 2024 to an estimated $21.5 billion by fiscal year 2028. This spending is guided by stringent directives from the White House and the Cybersecurity and Infrastructure Security Agency (CISA).

A cornerstone of this new defensive posture is the government-wide push toward “Zero Trust” architecture—a security model that operates on the principle of “never trust, always verify.” Mandated by Executive Order 14028, this shift requires agencies to dismantle their traditional perimeter-based defenses in favor of a more granular, identity-centric approach. This complex and resource-intensive transition has created a massive market opportunity for specialized firms that possess the expertise to guide agencies through the process.

ShorePoint has already established itself as a leader in this domain. Founded in 2017, the firm has secured over $115 million in federal contracts by providing services in Zero Trust implementation, security data analytics, and risk management. Its client roster includes some of the most critical federal entities. In February 2024, ShorePoint won a five-year, $50.8 million contract to modernize the cybersecurity programs of the Federal Retirement Thrift Investment Board (FRTIB). The firm is also a major partner to the Department of the Treasury, which accounts for 82% of its unclassified prime contract revenue, and was recently named one of ten companies on a potential $20 billion blanket purchase agreement for the Treasury's PROTECTS cybersecurity program.

Private Equity as a Force Multiplier

For specialized firms like ShorePoint, scaling up to meet the federal government's immense needs presents a significant challenge. This is where private equity is increasingly playing the role of a force multiplier. CMEP, a firm with a nearly 30-year track record of investing in the federal services and aerospace & defense sectors, provides not just capital but also strategic guidance and industry relationships.

“The decision was made to ignite our growth and seize opportunities in this rapidly evolving market,” stated Matt Brown, CEO of ShorePoint, following the announcement. He emphasized that CMEP brings “decades of experience supporting companies in the federal marketplace” and that the partnership will focus on “rapidly accelerating our business by expanding our already extensive cyber capabilities.”

This sentiment was echoed by CMEP's leadership. “ShorePoint's vision, expertise and strong track record in federal cybersecurity are truly impressive,” said Jeffrey Mark, Managing Partner at CM Equity Partners. “We are proud to partner with the ShorePoint team to support their continued expansion, enhance capabilities and empower employees to drive mission impact for federal agencies.” The investment allows ShorePoint to remain a standalone company under its existing leadership, ensuring continuity while providing the resources needed for next-level growth.

This model—infusing a proven government contractor with private capital—enables firms to compete for larger contracts, invest in research and development for emerging threats, and attract top-tier talent in a notoriously competitive field. It bridges the gap between a firm's demonstrated expertise and its capacity to operate at the scale the federal government now requires.

Navigating the Complex Deal-Making Landscape

Executing such a strategic investment in the highly regulated government contracting space is a complex undertaking, requiring deep legal and transactional acumen. The involvement of DLA Piper, a firm that has ranked number one in global M&A deal volume for 14 consecutive years according to Mergermarket, underscores the intricate nature of the transaction.

The firm’s specialized Aerospace, Defense, and Government Services (ADG) Transactional practice was instrumental in structuring the deal. This group navigates a labyrinth of federal acquisition regulations, national security mandates, and corporate law to facilitate growth and strategic partnerships in the defense sector.

“This transaction aligns two great organizations and accelerates critical growth in the federal cybersecurity sector,” noted Jeffrey Houle, Chair of DLA Piper’s ADG practice. “Working alongside the CMEP team to help structure and finalize this investment was a privilege and underscores our commitment to providing sophisticated legal guidance in the federal services and private equity sectors.”

The successful closing of the CMEP-ShorePoint deal serves as a case study in modern strategic finance. It demonstrates how expert legal counsel can de-risk complex transactions, enabling private capital to flow into areas of critical national importance and ensuring that innovative companies have the support they need to thrive.

With this new backing, ShorePoint is poised to deepen its impact. The capital infusion will likely fuel an expansion of its Zero Trust implementation services, help it penetrate new federal agencies beyond its current strongholds, and allow for investment in advanced capabilities like AI-powered threat detection. This strategic partnership between a mission-focused cybersecurity innovator, a savvy private equity investor, and a top-tier legal advisor provides a powerful template for how the private sector can effectively contribute to strengthening national security. The investment not only positions ShorePoint for significant corporate growth but also enhances its ability to help defend the nation’s most vital digital infrastructure against ever-evolving threats.