Should the advisor invest in projects that he (she) is accompany?

Time-by-time, I receive a question - do I invest monetary resources in the project(s) that I advising. My answer here is NO.

My answer is argued by the following:

I see the presence of a #conflict of self-interest and 'blurring' of eyes because of this as the situation is assessed from within and not externally and as result not independently.

For example, if you become a one of "retail" #investor in a PE #fund, then you are interested in attracting other investors as soon as possible, as this will determine the earliest return and success of your own #investments.

Because of such distractions and horse races, you may not find some shortcomings in the PE fund (or project) to correct them in time.

The usual human factor ...

P.S. I invest in own professional development, to will be in the course of proper positions on the market to provide more quality advice to my clients.

What do You think about it?