The subjects of this comprehensive literature study are the factors that influence picking an investment and the processes by which private equity (PE) investments generate value. This report synthesizes current information on the variables affecting investment choices in PE and the tactics implemented to boost the portfolio performance of companies by examining academic papers from respected sources such as Researchgate and Google Scholar. Value creation initiatives, including operational improvements, financial restructuring, and strategy realignment, are highlighted in the evaluation, along with important factors like marketplace potential, financial stability, and quality of management. According to the larger area of investment management, this in-depth examination seeks to provide a sophisticated comprehension of how private equity companies choose assets and generate value.