There is normally a hurdle rate (an annual required return of 7-10%) that basic partners must attain prior to efficiency costs are allowed to be taken. The structure of these performance fees motivates the partners of private equity firms to create large returns; they are meant to align the interests of the general partner with the minimal partners - .
PE Firm Focus There are various types and sizes of private equity companies and funds. tyler tysdal denver. A private equity company Click for more might have numerous funds that can focus on either a particular industry or a specific location. Private equity firms develop funds to focus on locations where they think that can create worth for companies. .