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.