the employer raises the capital, so that you invest the someone else’s money.

This has 2 main advantages:

1. You have limited downside. if you lose all the investor’s money, you don’t lose any of your own money - and contractually you still get paud the management fee.

2. It’s way more lucrative to get a very tiny part of the returns on a 1bn investment, than to get all the returns on a 100k investment…