Whitman School of Management at Syracuse University
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Risk Management in Private Equity Funds: A Comparative Study of Indian and Franco-German Funds
Vol. Volume 11, Number 1 March/2006

Can Kut and Jan Smolarski
Venture capitalist and buy-out funds are often considered experts at investing in high-risk projects and companies. To be successful investors, private equity funds must therefore manage the many aspects of risk that are associated with investing in non-public enterprises. This study examines how Indian private equity funds manage several dimensions of risk in comparison to non-Anglo-Saxon funds. We analyze risk management preferences in Indian and Franco-German funds in pre- and post-investment stages. The results, which are discussed in detail, show significant differences between the two groups.