The standard approach to measuring portfolio risk - regressing portfolio returns on market returns - seriously … understates the risk of venture capital, buyouts (private equity), real estate, and other alternative assets not traded in active … of stale valuations in the calculation of return. I present an approach to measuring risk that fully addresses the …

This article reviews empirical methods to assess risk and return in private equity. I discuss data and econometric … issues for deal-level, fund-level, and publicly traded partnerships data. Risk-adjusted return estimates vary substantially … the stock market, the average venture capital (VC) fund earned positive risk-adjusted returns before the turn of the …

Managing risk is one of the main activities of venture capital companies. Despite the fact that this topic is of high … practical relevance, only little research was published on risk management performed by venture capital companies in their … measures to decrease failure risk in venture capital-backed ventures. We tested these hypotheses with an empirical data set of …

Risk models commonly used in practice disregard the diversifiable risk of LP's PE portfolios. Based on a unique data … set we find evidence that the relevance of idiosyncratic portfolio risk might be underrated. Our simulation results show … that diversification across the number deals significantly mitigates idiosyncratic portfolio risk in large LP portfolios …