Exit strategy is an extremely crucial part of making investments. Indeed, knowledge of exit options is an essential element of entry and Private Equity (PE) investors need to be clear about their exit options and strategies. It is important for an investor to be able to sell his holdings and exit in the most profitable and quick way. Generally, the following are the most common exit options available to PE investors: Initial Public Offering (IPO) The IPO, the traditionally preferred route, is the method by which investors will have the right to offer their shares for sale to the public and then Exit. The most obvious benefits include long-term equity benefits for the investor in the company and a higher valuation, which depends on the prevailing market conditions. However, listing a company's shares is subject to strict regulatory requirements and restrictions, making the IPO a time-consuming and expensive process. Despite the complicated process, IPO exits are seen as the primary exit mode. 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 great year was the strength of the IPO channel in 2013. The number of takeover IPOs increased 67% worldwide from 112 in 2012 to 187 in 2013.Put OptionAn exit through put- The option provides a put option right with PE investors on the shares of the promoters of the company. Earlier, the Reserve Bank of India (RBI) was of the view that exit deals with put options are invalid because it is a guaranteed exit at a guaranteed price which is equivalent to a foreign commercial loan. This view taken by the RBI has left PE investors in a dilemma… midway through the paper… inancingPut option exit price could hurt 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 -gli investors-find-new-ways-to-cash/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: Private Equity Outlook for Asia-Pacific 2014, Ernst & Young, 2014.