Published Online:October 2024
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP181024
Author Name:Satish Chandra Tiwari, Kishan Jee and Akash Ranjan
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:403-417
The paper examines private equity (PE) investments and exits in India from 2012 to 2022. It explores the sectoral influence on the value of PE investments and exits in India using financial performance indicators. The variables used to study the financial indicators are: return on assets (ROA), long-term debt, interest coverage, working capital turnover, leverage and net profit margin. The paper examines the elements to identify the sectoral differences in PE investments and exits in India. It is found that return on equity (ROE), working capital turnover ratio and current ratio pointedly influence PE investments. Also, ROA, debt to assets, and current ratio substantially impact decisions facilitating PE exits.
Asset classes available for investment around the globe are equity investments, debts comprising bonds, debentures, fixed deposits, commodities (gold and silver) and alternative asset classes such as real estate, cryptocurrencies, artefacts, private equity (PE) and credit. The paper focuses on one of the alternative asset classes that made their space in the 1990s by launching their initial funds.