There is usually a difficulty rate (a yearly needed return of 7-10%) that basic partners need to accomplish prior to performance fees are allowed to be taken. The structure of these performance charges encourages the partners of private equity firms to create large returns; they are intended to align the interests of the general partner with the restricted partners - .

PE Company Focus There are several types and sizes of private equity companies and funds. . A private equity company could have numerous funds that can specialize in either a particular market or a specific location. Private equity firms develop funds https://www.evernote.com/shard/s734/sh/c2d001db-6c67-0f49-5404-6a32649144f6/c0e25bc9142ddf50642ac350bfdc8f5c to focus tyler tysdal lone tree on locations where they believe that can develop value for companies. .