There is usually a hurdle rate (an annual required return of 7-10%) that general partners should achieve before efficiency costs are enabled to be taken. The structure Browse around this site of these performance fees encourages the partners of private equity firms to produce large returns; they are planned to line up the interests of the basic partner with the restricted partners - business broker.
PE Firm Focus There are various types and sizes of private equity companies and funds. . A private equity firm might have numerous funds that can focus on either a specific market or a specific location. Private equity companies develop funds to concentrate on locations where they think that can create value for business. .
