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...

Venture Capital (VC) and Private Equity (PE) investors play a different role in their portfolio companies. We argue that this will translate in a recognizable difference in the investment sensitivity to cash flows of portfolio companies and its evolution after the first investment round. We...

This book chapter discusses financial intermediation of socially responsible investments in the primary market and sketches a new asset class: Responsible Private Equity (RPE). The authors identify the characteristics of RPE and how it could satisfy certain classes of responsible investors,...

The paper deals with the issues of attracting investments into venture capital and private equity funds in Latvia. The aim of the research is to assess changes in the venture capital and private equity industry and evaluate its condition in the post-crisis period. The period of analysis is the...

This is the first empirical paper investigating a comprehensive sample of listed (i.e. publicly traded) private equity companies, covering 287 companies in the time period 1986 to 2003. After imposing liquidity constraints, and after correcting for non-surviving vehicles, we get a sample of 114...

This paper analyses the financial and economic conditions of the companies in the portfolios of Italian private equity funds. Information from an ad hoc survey of Italian asset management companies, combined with accounting data for 2008 drawn from the Central Credit Register, is used to develop...

According to the often-cited CapCo study (2003) about hedge fund failures, 50% of the failures were driven by Operational Risk. Not only for hedge funds, but also for other asset management companies – such as private equity companies, family offices or independent asset managers - operational...

This paper investigates the main determinants of pension funds investment in private equity funds, and particularly in venture capital and leverage buyouts in the US and Canada over the 1996-2011 period. Our results, based on a Tobit model, show some important differences between pension funds...

The recent financial turmoil has resulted in most of the wealth residing in the form of cash. An extensive research on the various types of funds, the amount of money which goes into each of them and their asset allocation will help us in understanding the fund management business in a broad...

Active management plays a critical, positive role in the efficiency of capital markets. In the first study of its kind to use data on institutionally-focused products, we find that, while a large percentage of active equity managers earn enough alpha on average to cover their costs, less than 2%...