There is generally an obstacle rate (an annual required return of 7-10%) that general partners should achieve before efficiency costs are allowed to be taken. The structure of these performance fees encourages the partners of private equity companies to produce big returns; they are planned to line up the interests of the general partner with the limited partners - .

PE Firm Focus There Tyler Tysdal business broker are numerous various types http://juliusjhea011.almoheet-travel.com/private-equity-growth-strategies and sizes of private equity companies and funds. . A private equity firm could have numerous funds that can focus on either a particular market or a specific geography. Private equity companies produce funds to concentrate on areas where they think that can produce value for companies. .