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Ph.D.
(Management)
A STUDY ON FACTORS AFFECTING INVESTMENT DECISION OF
FUND MANAGERS OF PRIVATE EQUITY FIRMS IN INDIA

Ph.D. Scholar : Dattani Mittal Prafulbhai
Research Supervisor : Dr. Akash B. Patel

Regi. No.: 13146031001
Abstract :
The access of sources of capital apart from the traditional instrument like public equity,
debt and bank finance is still limited. It was the gathering point between the need to raise
capital and the craving to accomplish exceptional yields from putting resources into
privately owned businesses which prompted the making of Private Equity Funds. They
serve both as a financing administration vehicle for the entrepreneurs who put resources
into them and as agents and included as a worth suppliers of the fund for the
organizations in which they contribute. The Private Equity Fund refers primarily to a body
which brings capital for Portfolio Company in businesses on equity based groundwork
and which is overseen professionally by management companies.

Private Equity (PE) has been real drivers of development, financial development, and
learning base industry and new companies. Private Equity industry takes after the idea of
high-risk and exceptional yield. Private Equity is by and large equity investments made by
Private Equity Firms, at a later stage in organizations having the capacity to give a high
rate of profit for their investments. It is a wellspring of supporting enhancement,
information based plans and engineering and human capital concentrated undertakings.
It backs business by giving the value capital required to leverage buy outs which by and
large not accessible from banks and other money related organizations. Private equity as
an asset class has many segments and Venture Capital fund is a part of the Private
Equity funds segment. It is fascinating to note in this setting that with the advancement
of the innovative business as of late, numerous Private Equity funds which were once
related to other financing fields began putting extensive sums in fields which are
connected with traditional Venture Capital funds.
As it was mentioned that Private Equity is a professionally managed fund, General
Partners (GP) or the fund managers of private equity firms are responsible to evaluate the
investment proposal from the portfolio company. Previously, factors considered by fund
managers of Private Equity firms were not given impetus by the private equity firms or
portfolio companies. Even private equity or leverage buy outs specifically have not gained
extraordinary scholarly consideration. However, in recent time the criteria’s governing
investment decision need to be studied so that to develop composite model of the

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