Private Equity investments have restructured the trend of acquisitions and aided in valuecreation as against strategic buyers. Private equity’s growing involvement in many sectors is evenmore striking. The nature of investments of private equity firms and funds, the strategies employed,value creating practices, profitable exits are significantly different from that of other strategic andcorporate buyers. The paper deals with the above aspects. The paper is divided into two parts. Part Ideals with the basics of private equity investment structures and exits. Part II of the paper deals withthe private equity growth story in India. Private equity investments, proposed changes to regulations,sectoral growth, venture capital regulations as well as impact of the latest Union budget a thecredit crunch have been dealt with.