There is typically an obstacle rate https://holdenwcpe722.godaddysites.com/f/an-intro-to-growth-equity-... (a yearly needed return of 7-10%) that general partners must accomplish before performance fees are permitted to be taken. The structure of these performance costs inspires the partners of private equity companies to produce big returns; they are intended to line up the interests of the general partner with the restricted partners - .

PE Company Focus There are various types and sizes of private equity firms and funds. . A private equity company might have multiple funds that can concentrate on either a particular industry or a particular location. Private equity companies create funds private equity tyler tysdal to concentrate on areas where they believe that can develop worth for business. .