There is generally a hurdle rate (a yearly needed return of 7-10%) that general partners must accomplish prior to performance costs are allowed to be taken. The structure of these performance charges motivates the partners of private equity companies to produce large returns; they are intended to line up the interests of the general partner with the restricted partners - .
PE Firm Focus There are various types and sizes of private equity companies and funds. . A private equity company might have multiple funds that can specialize in either a entrepreneur tyler tysdal particular market or a specific location. Private equity firms develop funds Tysdal to focus on areas where they think that can develop value for business. .
