Nearly 40% of private equity managers fear an increase in litigation and 59% believe there will be no reduction in lawsuits against investment firms in the next two years.

Nearly two thirds of managers have no formal plan to assess and manage the risks that may cause such legal action, according to a report from Marsh, a risk and insurance services group. As private equity firms increase in number and the volume and value of deals rises, litigation levels will naturally go up, said the report.