There is typically a hurdle rate (a yearly needed return of 7-10%) that general partners need to accomplish before efficiency fees are permitted to be taken. The structure of these efficiency costs inspires the partners of private equity companies to create big returns; they are planned to line up the interests of the general partner with the minimal partners - .
PE Company Focus There are several types and sizes of private equity companies and funds. . A private equity company might have multiple funds that can private equity investor focus on either a particular industry or a particular location. Denver business broker Private equity firms create funds to concentrate on areas where they believe that can develop value for business. .