There is normally a hurdle rate (a yearly required return of 7-10%) that general partners should achieve prior to performance charges are permitted to be taken. The structure of these performance charges motivates https://diigo.com/0mnire the partners of private equity firms to generate big returns; they are meant to align the interests of the basic partner with the limited partners - .

PE Company Focus There are several types and sizes of private equity firms and funds. . A private equity firm might have numerous funds that can focus on either a specific industry or a particular geography. Private equity companies create funds to concentrate on areas where they Denver business broker think that can create worth for business. .