There is usually a hurdle rate (an annual required return of 7-10%) that basic partners must accomplish before efficiency fees are enabled to be taken. The structure of these efficiency charges motivates the partners of private equity companies to produce big returns; they are meant to align the interests of the basic partner with the minimal partners - .
PE Company Focus There are various types and sizes of private equity companies and funds. . A private equity company might have several funds that can concentrate on either a particular industry or a specific geography. Private equity companies develop funds to focus on locations where they tyler tysdal SEC think that can create value for companies. managing director Freedom Factory.
