There is normally a hurdle rate (an annual required return of 7-10%) that general partners must attain before efficiency fees are permitted to be taken. The structure of these efficiency costs encourages the partners of private equity firms to https://pbase.com/topics/vormaswere/eutgzip259 generate big returns; they are intended to align the interests of the general partner with the minimal partners - .

PE Company Focus There are numerous various types and sizes of private equity companies and funds. . A private equity firm could have multiple funds that can specialize in either a specific industry or a particular location. Private equity firms create funds to focus on areas where they think that can create worth for business. tyler tysdal.