There is usually an obstacle rate (an annual needed return of 7-10%) that basic partners must achieve prior to performance charges are permitted to be taken. The structure of these efficiency charges motivates the partners of private equity firms to produce large returns; they are meant to line up the interests of the general partner with the restricted partners - .
PE Firm Focus There are many various types and sizes of private equity firms and funds. Denver business broker. A private equity company might have several funds that can concentrate on either a particular industry or a specific location. Private equity firms produce funds to focus on areas where they believe that can develop value for business. tyler tysdal indictment.