Understanding Private Equity (Pe) Investing - tyler Tysdal

[Babette Susana]

There is normally a hurdle rate (a yearly needed return of 7-10%) that basic partners must attain prior to performance costs are permitted 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 general partner with the limited partners - .

PE Company Focus There are various types and sizes of private equity companies and funds. Ty Tysdal. A private equity company might have multiple funds that can concentrate on either a particular market or a particular geography. Private equity firms develop funds to concentrate on areas where they think that can produce value for business. Tyler Tivis Tysdal.