The private equity and family office sectors operate in environments where cybersecurity vulnerabilities can translate into massive financial losses. When these high-stakes organizations rely on managed IT service providers, mediocrity becomes a dangerous liability that can cost millions. Clark Sandlin, CEO and founder of Zyrka, has spent decades witnessing the consequences of poor MSP choices and offers practical insights for proper vetting.
When Bad IT Choices Go Very Wrong
Clark’s phone usually rings when something’s already gone sideways. “I have been called into many complex situations after the damage was done, a malware breach that took down 71 branch offices of a private equity group’s portfolio company,” he explains. That’s not a small hiccup. That’s the kind of mess that makes headlines and costs serious money. The stories keep coming. Internal IT departments that couldn’t handle cybersecurity audits. ERP integration disasters during acquisitions. “There have been numerous instances of IT infrastructure and ERP integration debacles from M&A transactions,” Clark notes. But it’s not all crisis management. He’s also worked with firms just starting out, helping them “build an affordable, secure, and scalable IT infrastructure as they raise their first fund.”
Understanding MSP Risks
There’s no point sugarcoating the situation. “Most managed IT service providers out there, mediocre at best,” he says. That’s a pretty harsh assessment, but he’s got the battle scars to back it up. “In the world of private equity and family offices, where vulnerability is a liability, mediocre just doesn’t cut it.” The problem isn’t just technical incompetence. It’s that most MSPs don’t understand what’s actually at stake. When you’re dealing with sensitive financial data and regulatory requirements, there’s no room for the kind of mistakes that might slide in other industries. Clark boils it down to one question: “Can this MSP protect me when it matters most?”
Evaluating Leadership and Values
Everyone checks online reviews, but Clark thinks that’s mostly a waste of time. “Good reviews can be bought and bad reviews can be manufactured by competitors,” he points out. Instead, he wants to know about the people running the show. “Ask the CEO what drives him. Find out what the company’s value and mission statements are. If they don’t have any, that indicates a problem.” Money matters too. Clark suggests asking “how many economic downturns they’ve survived” because it tells you something about their staying power. He also looks at LinkedIn connections. If the MSP’s leadership is connected to your peers, “odds are, they know your world.”
Testing MSP Systems
Technical talk is cheap. Clark wants to know if an MSP actually has a system or if they’re just making it up as they go. “What framework do they use? Are they aligned with NIST, Sands, or ITIL, or are they just winging it?” he asks. These aren’t just buzzwords. They’re the difference between organized, professional IT management and chaos waiting to happen. The backup testing question is crucial too. Lots of MSPs claim to have great backup systems, but Clark wants to know how they actually test them. When disaster strikes, you find out real quick whether those backups actually work.
Checking Emergency Readiness
Here’s Clark’s favorite reality check: “Call their emergency line on a Saturday. Did you get voicemail or did you get a live person?” It sounds simple, but it tells you everything you need to know about how they handle real emergencies. “If you get hit with a cybersecurity attack or a phishing attempt or your laptop’s dead, it’s not going to matter how nice they were on the onboarding process.”
“An MSP is not plug-and-play. They’re a partner, and if they don’t understand your business and your investors, they’re just guessing.” That means knowing about SEC audits, understanding compliance requirements, and having real experience with portfolio companies. Clark’s got a fun test for this: throw some industry jargon at them. “What is LBO? What is AUM? What is IRR? What is EBITDA? Throw your acronyms at the MSP to see if they understand your world.” If they’re stumbling over basic private equity terms, they’re probably not the right fit. The best MSPs get it. They understand that family offices need privacy, that there are fiduciary responsibilities involved, and that reputation risks are real. They “meet you where you’re at and not try and fit you into a box.” Clark’s message is pretty straightforward: don’t settle for mediocre when the stakes are this high. The right MSP partner exists, but you’ve got to know how to find them.
Connect with Clark Sandlin on LinkedIn to learn more about securing your IT operations with confidence.
