There is usually a hurdle rate Great post to read (an annual needed return of 7-10%) that basic partners should achieve before performance fees are enabled to be taken. The structure of these performance charges motivates the partners of private equity firms to generate large returns; they are meant to align the interests of the general partner with the restricted partners - .

PE Firm Focus There are numerous different types and sizes of private equity firms and funds. . A private equity firm could have numerous funds that can concentrate on either a specific industry or a specific geography. Private equity companies create funds to focus on locations where they think that can develop value for companies. business broker.