There is https://damienjfel260.skyrock.com/3345281928-basic-Pe-Strategies-Fo... normally an obstacle rate (a yearly needed return of 7-10%) that basic partners must attain prior to efficiency fees are enabled to be taken. The structure of these performance costs encourages the partners of private equity firms to create big returns; they are meant to align the interests of the general partner with the restricted partners - .

PE Firm Focus There are several types and sizes of private equity companies and funds. . A private equity firm might have multiple funds that can concentrate on either a particular market or a specific location. Private equity companies create funds to focus on locations where they think that can produce value for companies. tyler tysdal.