Article on risk management in the “Private-Equity-Lexikon”
In this article Dr. Christian Diller defines risk management in private equity and provides an overview of the potential risks of a private equity investment and by which means risks can be measured and managed. Due to high returns in the past the asset class private equity has taken a prevailing role in portfolios of institutional clients in recent years. At the same time, however, several risks associated with private equity were neglected and for that reason numerous investors were negatively surprised by the characteristics of this illiquid asset class during the financial crises in the years 2008 and 2009.
The article is published in the December 2011 new release of the “Private-Equity-Lexikon which describes in more than 2‘300 entries from A to Z the world of private equity.