There is generally a hurdle rate (an annual required return of 7-10%) that basic partners need to attain before performance costs are enabled to be taken. The structure of these performance fees encourages the partners of private equity companies to produce big returns; they are intended to line up the interests of the general partner with the minimal partners - tyler tysdal tyler tysdal wife.
PE Firm Focus There are many various types and sizes of private equity firms and funds. . A private equity company might have several funds that can focus on either a specific industry or a particular location. Private equity firms create funds to focus on areas where they believe that can create worth for companies. .