Fund III, which Investindustrial earlier used to invest in Ducati, was fully invested in 2007 and so Investindustrial had to use its newly raised Fund IV. Outline possible conflicts of interest in having two different funds invest in same company? What would you suggest Investindustrial do to mitigate the risks?
A) Identify conflicts of interest in multiple fund investments
B) Propose mitigation strategies for investment conflicts
C) Assess risks associated with dual fund investments
D) Advise on appropriate actions for Investindustrial