There is usually a hurdle rate (an annual needed return of 7-10%) that basic partners must attain before efficiency fees are allowed to be taken. The structure of these performance charges motivates the partners of private equity companies to create big returns; they are planned to line up the interests of the basic partner with the limited partners - .

PE Firm Focus There are various types and sizes of private equity companies and funds. tyler tysdal prison. A private equity company might have numerous funds that can focus on either a particular market or a particular geography. Private equity companies develop funds to concentrate on locations where they believe that can produce value for business. entrepreneur tyler tysdal.