Private investment plays a significant role in boosting the economic growth of a nation and in creating employment opportunity for large numbers of the population. However, these private investments had not been able to contribute significantly as expected because of different factors. Performance of domestic private investment in the study area becomes lower. The objective of the study is to examine the major determinants of domestic private investment Performance in Bahir Dar city administration. To achieve the objective of the study 151 sample private investment were selected from 242 total populations (private investment). The samples of the study were selected through stratified random sampling technique. For the purpose of the study questionnaire were used to obtain primary data from managers/owners and employees of private investment in Bahir Dar city administration and secondary data were obtained from reports, journals, and reference books. The collected data were analyzed through descriptive and inferential data analysis technique. The finding of the study showed that there is problem of availability of infrastructure, availability of credit, foreign exchange, raw material and legal and administrative issues. In addition infrastructure, credit, foreign exchange, and raw material have positive and significant relation as well as greatly affect the performance of private investment. Based on the finding the study recommended that the concerned city administration, regional as well as federal government should jointly work to fulfill the above mentioned facilities. Moreover, Bahir Dar city industry and investment office should create awareness about different rules and regulations regarding private investment and jointly work with other sectors to provide the necessary services for private investors. In addition, the office should take corrective actions on unethical managers and employees and assign qualified and professional employees.