"no equity investments by firm employees should be permitted in vehicles other than the funds managed by the firm."
While I'm an advocate for "skin in the game," I disagree with this statement. If firm employees are solely invested in the funds they're managing, their own asset allocations are going to be completely out of wack, generally. These employees would be smart to have some investments in other areas outside of their managed capital. Furthermore, from a comp perspective, they are going to have a lot of that driven by the markets and consequently should not have a large concentration of their net worth also tied up there. That is just poor money management.