There is usually a difficulty http://garrettkxpc534.jigsy.com/entries/general/5-top-strategies-for-every-private-equity-firm rate (an annual required return of Tyler T. Tysdal 7-10%) that general partners need to accomplish prior to efficiency fees are allowed to be taken. The structure of these efficiency fees inspires the partners of private equity firms to produce large returns; they are intended to line up the interests of the general partner with the limited partners - .
PE Firm Focus There are 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 specific location. Private equity firms create funds to focus on areas where they think that can develop value for companies. .