The exit strategy is an extremely decisive fraction of making investments. In fact, knowledge of exit options is an essential element of entry and Private Equity (PE) investors need to be very clear about their exit options and strategies. It is important for an investor to be able to sell and exit their holdings in the most profitable and quickest way. Generally speaking, here are the most common exit options available to PE investors: Initial Public Offering (IPO) IPO, the traditionally preferred route, is the method by which investors will have the right to offer their shares for sale to the public, then exit. The most obvious advantages include long-term shareholder benefits for the investor in the company and a higher valuation, which depends on market conditions. However, listing a company's shares is subject to strict regulatory requirements and restrictions, which make going public a lengthy and costly process. Despite the cumbersome process, IPO exits are considered the primary mode of exit. Examples of IPO exits in 2013 are SAIF's exit from JustDial and TPG's exit from Shriram Transport Finance. Apparently, for PE investors, what made a good year for exits a big year was the strength of the IPO channel in 2013. The number of IPOs for buyouts jumped by 67 % worldwide, increasing from 112 in 2012 to 187 in 2013. Put OptionAn exit via put- The option involves a put option right from PE investors on the shares of the company's promoters. Earlier, the Reserve Bank of India (RBI) was of the view that the exit terms of put options are not valid as it is a guaranteed exit at a guaranteed price which is equivalent to an external commercial borrowing. This view taken by RBI has left PE investors in a dilemma...... middle of document...... InancingPut option exit price may harm PE investors, available at http:/ /www.business-standard.com/article /markets/put-option-exit-pricing-may-hurt-pe-investors-114010801566_1.html(2008) 143 Comp Cas 2004 (BOM)2012 (114) Bom LR 1002Brooke Tucker , Differences Between Strategic and Financial Buyers, Tucker Capital Advisors LLC, 2005. Private Equity Investors Find New Ways to Cash Out, available at http://www.thehindubusinessline.com/features/investment-world/private- equity-investors-find-new-ways-to-cash-out /article4542042.ecePrivate Equity roundup India, Ernst & Young, 2013. Talking exits: Changing trends in private equity exits, available at http://www.business-standard .com/article/markets/talking-exits-changing-trends- in-private-equity-exits-113081900585_1.htmlA Maturing Market: Asia-Pacific Private Equity Outlook 2014, Ernst & Young, 2014.