In every developing or developed country, various companies raise capital based upon their risk appetite. Either they go for conventional methods of financing like bank borrowing or raising funds through public issue or self-financing. But at some point in the later stages of its lifecycle, a company has to look for new investments for growth and development and for various other reasons and that source happens to be costly and too large to be financed by the company. Private equity is one of such sources of financing. It fills the gap between self-financing and traditional sources of financing. Private equity, being a decades old concept, has attracted considerable amount of attention. Despite of ever growing interest in private equity, significant work has not been undertaken by academicians on the subject, the reason being, non availability of information relating to such a secretive economic sector. The existing literature work majorly comprise of issues including risk-return characteristic and performance of private equity, economics of private equity market, regulatory aspects of private equity and others aspects.