TY - JOUR T1 - Risk Management in European Private Equity Funds JF - The Journal of Private Equity SP - 42 LP - 54 DO - 10.3905/jpe.2006.635428 VL - 9 IS - 3 AU - Can Kut AU - Bengt Pramborg AU - Jan Smolarski Y1 - 2006/05/31 UR - https://pm-research.com/content/9/3/42.abstract N2 - To be successful in the private equity industry, venture capitalists and buy-out funds must manage the many aspects of risk that are associated with investing in nonlisted, small- and medium-sized enterprises. This study provides survey evidence of a wide range of risk management practices among 142 European funds in the private equity industry. The authors provide evidence of risk management preferences among funds in Denmark, Holland, Luxembourg, Ireland, U.K., Germany, Austria, Switzerland, Poland, France, Greece, Italy, Spain and Portugal. The article classifies funds based on whether they are primarily involved in venture capital or in buy-out investments, then analyzes the effects of fund type along several dimensions of risk. The results indicate that issues related to asymmetric information drive risk management practices.TOPICS: Private equity, developed, risk management, quantitative methods ER -