There is generally an obstacle rate Tysdal (a yearly needed return of 7-10%) that basic partners must achieve before efficiency fees are enabled to be taken. The structure of these performance charges encourages the partners of private equity companies to create large returns; they are intended to align http://elliottajvo513.bravesites.com/entries/general/private-equity... the interests of the general partner with the minimal partners - .

PE Company Focus There are several types and sizes of private equity firms and funds. . A private equity firm might have multiple funds that can concentrate on either a specific industry or a specific location. Private equity firms create funds to focus on locations where they believe that can create value for business. .