it doesn't make internal investment impossible. it just changes the pockets it comes out of. well, actually it doesn't even do that, because either way it would be coming out of the cash owned by the PE shops, whether it sits on the books of the company or has been paid out to its owners. they can always decide to invest more into initiatives that show a promising return. the issue here is not the structure, it's rather that the owners of these shops made mistakes, which will happen. but the incentives are not misaligned.