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Economic factors, Performance, External factors, Exit rout, Product, Unique and
innovative product, Business Model, Regulatory freedom, future scope, Patent protection,
Level of Competition, Management team, Experience of management team, Entrepreneur,
Capability of management team and Connection. To have the better understanding of the
criteria of investment, Logistic regression was conducted to know the impact of all
twenty one factors extracted (Authority, Deal structure, Control, Finance factors,
Economic factor, Performance, External factors, Exit rout, Product, Unique and innovative
product, Business Model, Regulatory freedom, future scope, Patent protection, Level of
Competition, Management team, Experience of management team, Entrepreneur,
Capability of management team and Connection) from the factor analysis on the
investors decision which was bifurcated into two on the basis of cluster analysis
performed in the study i.e. investors and divestors. After that, analysis of variance and
one sample t test were performed to know the difference between importance of the
factors and the duration of investment selection process. And one sample t test was also
conducted for factors and designation of fund managers. At the end of this thesis,
discussion on overall findings was presented in a systematic way as per the objectives of
the study.

Research concluded that the Deal structure, Exit rout, Regulatory freedom, Market,
Experience of management team and Capability of management team are significantly
important while making the investment decisions by the fund managers or GPs of private
equity firms in India. Further the result confirms that there is a significant difference
between importance of majority of factors affecting PE fund managers and the duration
of investment. At the end it was concluded that the importance of decision making
criteria varies for the different specialization and designation of fund managers.

Private equity firms must incorporate the standard decision making model so that
investment decisions by fund managers could be more objective than subjective and it
can result into the profitable investment.

Key Words: Private equity, General Partners and Portfolio Company

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