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The information deficiency problem of private equity fund of funds: a risk and monitoring management perspective

The importance of risk and monitoring management of private equity investments has increased in importance with the crumbling equity markets and the industry's emergence as an alternative asset class for investors. Gregor Diem of the University of Birmingham discusses its importance to private equity funds of funds and suggests some improvements that could be made.

The paper provides an outline of the theoretical background to the information deficiency problem. The issue of risk and monitoring management is covered in a series of 14 semi-structured interviews. From these, the author is able to discern its importance to the industry and ultimately discuss ways in which it can be improved, particularly with regards to information technology and electronic data interchange.

Copyright © 2003 EIF

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