There is generally a hurdle rate (a yearly required return of 7-10%) that basic partners need to achieve before performance charges are enabled to be taken. The structure of these efficiency fees encourages the partners of private equity firms to produce big returns; they are meant to align the interests of the basic partner with the minimal partners – tyler tysdal SEC.

PE Company Focus There are numerous different types and sizes of private equity firms and funds. Tyler T. Tysdal. A private equity company could have several funds that can specialize in either a particular industry or a specific location. Private equity firms create funds to concentrate on areas where they believe that can create value for business. .