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Risk Management In Private Equity Funds: A Comparative Study Of Indian And Franco-German Funds

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  • CAN KUT

    (Stockholm University School of Business, SE-106 91 Stockholm, Sweden)

  • JAN SMOLARSKI

    (Stockholm University School of Business, SE-106 91 Stockholm, Sweden)

Abstract

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.

Suggested Citation

  • Can Kut & Jan Smolarski, 2006. "Risk Management In Private Equity Funds: A Comparative Study Of Indian And Franco-German Funds," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 35-55.
    • Handle: RePEc:wsi:jdexxx:v:11:y:2006:i:01:n:s1084946706000258
    DOI: 10.1142/S1084946706000258
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    References listed on IDEAS

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    1. Mayer, Colin & Yafeh, Yishay & Schoors, Koen, 2002. "Sources of Funds and Investment Activities of Venture Capital Funds: Evidence from Germany, Israel, Japan and the UK," CEPR Discussion Papers 3340, C.E.P.R. Discussion Papers.
    2. Manigart, S. & Bruining, J. & Lockett, A. & Meuleman, M., 2002. "Why Do European Venture Capital Companies Syndicate?," ERIM Report Series Research in Management ERS-2002-98-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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