There is usually a difficulty rate (an annual required return of 7-10%) that general partners should accomplish prior to efficiency fees are enabled to be taken. The structure of these efficiency charges motivates the partners of private equity firms to create big returns; they are planned to line up the interests of the basic partner with the minimal partners - .
PE Firm Focus There are many various types and sizes of private equity firms and funds. Tyler T. Tysdal. A private equity company might have numerous funds that can specialize in either a particular industry or a specific location. Private equity companies develop funds to focus on locations where they think that can produce value for business. tyler tysdal SEC.