There is typically an obstacle rate (a yearly required return of 7-10%) that general partners must achieve prior to performance charges are enabled to be taken. The structure of these efficiency charges motivates the partners of private equity companies to produce large returns; they are intended to line up the interests of the basic partner with the limited partners - tyler tysdal denver.
PE Firm Focus There are numerous various types and sizes of private equity firms and funds. . A private equity company might have multiple funds that can concentrate on either a specific market or a specific location. Private equity companies produce funds to focus on areas where they believe that can create value for companies. tyler tysdal lone tree.
