There is normally a difficulty rate (an annual required return of 7-10%) that general partners should accomplish prior to efficiency fees are enabled to be taken. The structure of these performance charges encourages the partners of private equity firms to produce big returns; they are planned to align the interests of the basic partner with the minimal partners - businessden.

PE Company Focus There are several types and sizes of private equity firms and funds. . A private equity company could have numerous funds that can focus on either a particular industry or a particular location. Private equity firms produce funds to concentrate on areas where they think that can produce worth for business. tyler tysdal.