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decision making for investment proposal by private equity firms fund managers. So the
right decision would be taken which will result into win-win situation for fund managers,
Limited Partners (LPs) and Portfolio Company.

First of all to develop background of the study, basic information was collected which
includes definition of PE, advantages and disadvantages, rules and regulations governing
the PE industry in India, performance of PE industry in India, investment decision making
models of GPs and criteria’s considered by GPs for investment. As this study has been
done from the perspective of the Private Equity firms who invest in India, PE Investment
data has been collected pertaining to India.
Once the background data was collected and rational of the study was established
further the literature review was conducted by reviewing past research studies in Private
Equity, criteria’s governing private equity investment decisions and decision making
models of PE investment. This created background of research. The in depth review of
literature helped in finding out research gap and theoretical framework of the study.

To overcome the research gap identified from the literature and to fulfill the main
research objective of the study i.e. to understand the impact of the factors affecting
Private Equity fund managers’ decision on their investment decision making, detailed
study was conducted to develop PE investment decision making model by combining
important decision making criteria for PE fund managers and fund managers investment
decision making for better understanding of the factors considered by GPs or fund
managers of Private Equity firms in India. For this research exploratory as well as
descriptive research designs were used. In this research, to identify important factors
considered by GPs and to know the probability of their investment decision if a particular
criteria gets fulfilled, fund managers or General Partners who are taking the investment
decision of private equity investment in private equity firms operating in India were taken
as respondent. Research data was collected from 63 private equity firms operating in
India. Total 320 fund managers of private equity firms in India were surveyed through
structured questionnaire to get the required data for the research. Fund managers were
selected using convenience sampling method. The limitations of the research study were
also mentioned.

In the current study first, the analysis of data collected from the fund managers was
carried out. As the structure questionnaire includes four major criteria i.e. Management
regulation with other criteria, Economic and Financial factors, Product Market & Business
Plan and Entrepreneur & Management team; exploratory factor analysis was conducted
to find out factors important for private equity investment decision making. Total twenty
one factors were extracted i.e. Authority, Deal structure, Control, Finance factors,

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