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In so doing, they sometimes fail to build appropriate controls and leave existing managers overstretched: NatWest has built a sizeable derivatives business out of nothing in a handful of years.
Firms in Europe are seen primarily as catering to management buy-outs (MBOs), in which a fund acts as a source of money for existing managers to take over their own operations.
But the law left it up to regional governments to set conditions, such as the minimum size of a private plot; some have chosen sizes as large as 200 or 300 hectares, which favours the farms' existing managers and forces the farm workers to band together in large, unwieldy groups if they want to strike out on their own.
The company did not name a successor, and will divide his responsibilities among existing managers.
And yet that's just what's happening at an ever-increasing clip, as private equity firms gobble up more and more companies, creating prolonged periods of suspense and uncertainty for existing managers and other employees.
In the meantime, the receiver either operates the company or oversees its existing managers.
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The existing manager will not walk, so he treads an uneasy path.
[With] a couple of them, it's been quiet apparent that before the existing manager got sacked somebody was in place to already come in.
The club's chairman Tony Stewart told BBC Sheffield: "It was a case of carrying on as we are now, or part company with the existing manager and possibly give a new manager the time to get to know the players before the end of the season.
The second period value function V 2 then shows the present discounted value (p.d.v). to the VC of either investing and continuing one more period with the existing manager of uncertain quality (yielding p.d.v. − I 2 ( S 2 ) ~ + δ p 3 S 2, ~ S 1, π 3 − c ) or investing and replacing her with an outsider of known quality (yielding p.d.v. Π m )i.
At the time the fund manager said payouts were "designed to reward existing management for distributing existing shareholder value".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com