There is normally a hurdle rate (an https://penzu.com/p/11658997 href="http://arthurpsmu328.bearsfanteamshop.com/how-to-invest-in-private-equity-the-ultimate-guide-2021">businessden annual required return of 7-10%) that general partners need to achieve before efficiency costs are allowed to be taken. The structure of these performance costs motivates the partners of private equity firms to produce big returns; they are intended to line up the interests of the basic partner with the limited partners - .
PE Firm Focus There are various types and sizes of private equity firms and funds. . A private equity company could have numerous funds that can focus on either a specific industry or a specific geography. Private equity firms produce funds to concentrate on locations where they think that can produce worth for companies. .
