There is normally a hurdle rate (a yearly needed return of Ty Tysdal 7-10%) that general partners should attain before efficiency fees are allowed to be taken. The structure of these performance fees motivates the partners of private equity companies to produce big returns; they are intended to align the interests of the general partner with private equity investor the restricted partners - .
PE Firm Focus There are numerous different types and sizes of private equity firms and funds. . A private equity firm could have multiple funds that can focus on either a particular industry or a particular location. Private equity firms produce funds to concentrate on locations where they think that can develop worth for business. .
