There is usually a hurdle rate (a yearly required return of 7-10%) that basic partners must attain prior to performance charges are enabled to be taken. The structure of these efficiency fees encourages the partners of private equity firms to create big returns; they are planned to line up the interests of the general partner with the restricted partners tyler tysdal wife - .

PE Firm Focus There are many different types and sizes of private equity firms and funds. . A private equity company might have multiple funds that can focus on either a specific market or a particular location. Private equity firms develop funds to concentrate on areas tyler tysdal SEC where they believe that can produce value for companies. .