There is private equity investor typically an obstacle rate (an annual needed return of 7-10%) that basic partners must achieve before efficiency costs are allowed to be taken. The structure of these efficiency fees encourages the partners of private equity firms to create large returns; they are intended to line up the interests of the basic partner with the restricted partners - business broker.
PE Company Focus There are several types and sizes of private equity firms and funds. . A private equity company might have numerous funds that can specialize in either a specific industry or a particular location. Private equity companies create funds to concentrate on areas where they believe that can develop worth for companies. .