There is typically a hurdle rate (an annual needed return of 7-10%) that basic partners should achieve prior to efficiency costs are enabled to be taken. The structure of these businessden performance fees motivates the partners of private equity firms to create large returns; they are intended to line up the interests of the basic partner with the limited partners - .
PE Company Focus There are several 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 specific geography. Private equity companies produce funds to concentrate on areas where they believe that can create value for business. tyler tysdal denver.