PRINT THIS PAGE The price of diversifiable risk in venture capital and private equity21/05/2003. Source: Graduate School of Business: Columbia University. Charles Jones and Mathew Rhodes-Kropf 
 The fundamental characteristics of private equity mean that the value of risk is notoriously difficult to price. Charles Jones and Mathew Rhodes-Kropf of the Graduate School of Business at Columbia University discuss the barriers to effective risk assessment and the role risk plays in the industry.
Jones and Rhodes-Kropf explore the importance of management, poor information flow and a subsequent lack of accessible competition in determining the level of risk and subsequent returns involved with any given investment.
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Charles Jones is a research professor at Columbia School of Business with a broad focus on transaction costs, frictions and market liquidity.
Mathew Rhodes-Kropf is Assistant Professor at Columbia School of Business and specialises in venture capital and in financial applications of auction theory. He also manages a small investment fund and enjoys his involvement with the Entrepreneurial Centre.
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