This study conducted in order see the performances of private investment in regional distribution, sector composition, ownership structure, and employment opportunity creation. Most of private investment project concentrated around Addis Ababa, with manufacturing and service sector and scores higher implementation rate. In addition to this most of foreign private projects are capital incentive while Domestic private projects have higher share in employment opportunity creation. The study set out to analyses the major factors that affects of private investment in Ethiopia (1986-2015). The regression results show that GDP per-capital, and external debt have significant positive long run effect on private investment, while broad money supply and average exchange rate have negative long run effect. Broad money supply, GDP per-capital, and external debt have significant short run effect Finally expansion of infrastructure in most developing regions, increasing income generation mechanism for citizens and creating fertile investment climate are some of the recommendation forwarded.