There is usually a hurdle rate (an annual needed return of 7-10%) that general partners should accomplish prior to efficiency costs are permitted to be taken. The structure of these efficiency costs motivates the partners of private equity firms to produce large returns; they are intended to align the interests of the basic partner with the limited partners - .
PE Company Focus There are several types and sizes of private equity firms and funds. business broker. A private equity firm might have several funds that can concentrate on either a particular industry or a specific location. Private equity firms develop funds to focus on locations where they think Tysdal that can produce worth for business. .
