There is normally a hurdle rate (a yearly required return of 7-10%) that basic partners should attain prior to performance costs are permitted to be taken. The structure of these efficiency fees inspires the partners of private equity firms to create big returns; they are meant to line up the interests of the basic partner with the minimal partners - Tyler Tivis Tysdal.
PE Company Focus There are several types and sizes of private equity firms and funds. . A private equity firm might have several funds that can specialize in either a specific market or a particular geography. Private equity companies develop funds to concentrate on areas where they think that can produce value for business. Ty Tysdal.