There is generally a hurdle rate (an annual required return of 7-10%) that general partners need to accomplish before efficiency costs are allowed to be taken. The structure of these efficiency fees encourages the partners of private equity companies to generate big returns; they are planned to align the interests of the basic partner with the minimal partners - .

PE Company Focus There are various types and http://keegannvsk964.cavandoragh.org/an-intro-to-growth-equity-1 sizes of private equity companies and funds. . A private equity firm might have multiple funds that can specialize in either a tyler tysdal prison specific industry or a specific location. Private equity companies create funds to focus on areas where they think that can develop value for business. .