There is generally an obstacle rate (a yearly required return of 7-10%) that basic partners should accomplish prior to performance charges are allowed to be taken. The structure of these efficiency costs inspires the partners of private equity companies to produce big returns; they are meant to align 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 investigation. A private equity firm might have several funds that can specialize in either a specific industry or a particular geography. Private equity firms produce funds to focus on areas where they believe that can produce worth for companies. tyler tysdal lone tree.