Private equity is a risky asset, but private equity investments not necessarily so. We look at the risk profile of each type of investment vehicle, and find clear differences. For example in venture capital, the probability of a total loss of capital invested is around 30% for direct...

Private equity fund-of-funds (FoF) investments are now contributing more than 10% of the capital to private equity, i.e. venture capital and buyout. However, their risk profile is not well understood due to the opaque and illiquid market, and the limited access to performance figures. FoFs need...

How can institutional and private investors safely invest into private equity funds?We provide a review of the private equity fund industry and a description of all the relevant management issues of fund investments, from an individual investment to a risk and portfolio management perspective....

We study the valuation behaviour of private equity fund managers using a European private equity fund investor's database. We had not only complete cash flow information from all 2,500 indirect company investments of their funds, but most importantly all its 15,000 valuations by the fund...

Venture capital funds operate in an opaque and illiquid market, where standard risk models are not directly applicable. We here propose a framework for a risk model for venture capital funds and fund-of-funds. In a previous paper, we proposed a consistent framework for performance and liquidity...

We propose a conceptually clear and consistent risk management tool for both performance and liquidity forecasting for venture capital funds. Its input is a factor on market conditions and a correction factor that is a judgment on the accuracy of the reported net asset value as the net present...

We study clustering of underlying investments across funds in public and alternative markets. Funds often invest in the same company or stock, and we study whether the amount of overlap is indicative of random or clustered investing and what that can tell us. We start with the simplest case, and...