There is normally an obstacle rate (an annual needed return of 7-10%) that basic partners need to accomplish prior to efficiency fees are enabled to be taken. The structure of these performance fees motivates the partners of private equity companies to generate large returns; they are intended to align the interests of the general partner with the minimal partners - .
PE Firm Focus There are various types and sizes of private equity companies and funds. Tysdal. A private equity company could have numerous funds that can concentrate on either a particular market or a specific location. Private equity companies develop funds to concentrate on locations where they think that can produce worth for business. managing director Freedom Factory.