... longer viable for most mediumsize managers hoping to break into the top ranks of the fund industry Given the fierce competition in the industry and the performance challenges of huge funds, medium-size ... attractive to investment professionals Nevertheless, these firms have serious inherent weaknesses: the difficulty in valuing their equity interests and in transferring them from one generation to another ... or the compensation inadequate or both—it is easy for them to leave They can defect to another fund firm, an institutional manager, or a hedge fund They can even consider starting their own fund, ...