There is usually a hurdle rate (a yearly required return tyler tysdal of 7-10%) that basic partners should accomplish before performance costs are allowed to be taken. The structure of these performance fees motivates the partners of private equity companies to produce large returns; they are intended to line up the interests of the basic partner with the restricted https://juliususub293.shutterfly.com/115 partners - .
PE Firm Focus There are many various types and sizes of private equity firms and funds. . A private equity firm could have several funds that can specialize in either a particular market or a particular location. Private equity companies create funds to concentrate on areas where they believe that can create value for companies. .