There is normally an obstacle rate (an annual required return of 7-10%) that general partners should accomplish before efficiency costs are enabled to be taken. The structure of these performance costs inspires the partners of private equity firms to produce big returns; they are intended to align the interests of the general partner with the minimal partners - businessden.
PE Firm Focus There are many various types and sizes of private equity companies and funds. Ty Tysdal. A private equity firm might have numerous funds that can focus on either a specific market or a specific location. Private equity firms create funds to focus on locations where they think that can produce value for companies. .
