There is typically a difficulty rate (an annual needed return of 7-10%) that general partners must achieve prior to performance charges are enabled to be taken. The structure of these efficiency costs motivates the partners of private equity companies to generate large Have a peek at this website returns; they are meant to align the interests of the basic partner with the restricted partners - .

PE Company Focus There are several types and sizes of private equity companies and funds. . A private equity firm might have several funds that can specialize in either a specific market or a specific location. Private equity firms create funds to concentrate on areas where they believe that can develop worth for business. .

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