Diversification in Venture Capital and Private Equity

Should VC/PE funds diversify? What are the advantages and disadvantages? Find out here. This report covers:

• Advantages of diversification: knowledge sharing, risk sharing, syndication and networking
• Disadvantages of diversification (or advantages of specialization): funds gain from having a USP, attention can be split across sectors, creating a 'limited attention' problem

The report draws on cutting edge empirical evidence from leading finance journals

Report author: Mark Humphery-Jenner