There is typically an obstacle rate (a yearly needed return of 7-10%) that basic partners must attain before efficiency fees are permitted to be taken. The structure of these performance charges inspires the partners of private equity firms to produce large returns; they are intended to align the interests of the general partner with the minimal partners - .
PE Company Focus There are various types and sizes of private equity companies and funds. Ty Tysdal. A private equity firm could have numerous funds that can specialize in either a particular market or a specific location. Private equity companies create funds to focus on areas where they think that can produce value for companies. Denver business broker.