Managing investment risks of institutional private equity investors - The challenge of illiquidity

Christoph Kaserer; Niklas Wagner; Ann Kristin Achleitner

doi:10.1007/3-540-26993-2_13

Managing investment risks of institutional private equity investors - The challenge of illiquidity

Christoph Kaserer, Niklas Wagner, Ann Kristin Achleitner

Technical University of Munich

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

2 Scopus citations

Abstract

Since private equity investments are not publicly traded, a key issue in measuring investment risks of institutional private equity investors arises from a careful measurement of investment returns in the first place. Prices of private equity investments are typically observed at low frequency and are determined by transactions under low liquidity. This contribution highlights useful approaches to the problem of return measurement under conditions of illiquidity. Then, specific risk management issues, including asset allocation issues, are discussed.

Original language	English
Title of host publication	Risk Management
Subtitle of host publication	Challenge and Opportunity
Publisher	Springer Berlin Heidelberg
Pages	259-277
Number of pages	19
ISBN (Print)	3540226826, 9783540226826
DOIs	https://doi.org/10.1007/3-540-26993-2_13
State	Published - 2005

Keywords

Asset allocation
Cash flows
Illiquidity
Net asset values
Private equity
Risk management
Risk/Return measurement
Stale pricing

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10.1007/3-540-26993-2_13

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KW - Net asset values

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KW - Risk/Return measurement

KW - Stale pricing

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Managing investment risks of institutional private equity investors - The challenge of illiquidity

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Keywords

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