There is usually an obstacle rate (a yearly required return of 7-10%) that general partners must attain before performance fees are allowed to be taken. The structure of these performance costs motivates the partners of private equity companies to generate big returns; they are planned to align the interests of the general partner with the limited partners - .
PE Firm Focus There are numerous different types and sizes of private equity companies and funds. . A private equity firm could have numerous funds that can focus on Click for more info either a specific market or a particular geography. Private equity firms produce funds to concentrate on locations where they believe that can create value for companies. Tysdal.
