Hedge fund valuation methodology

I previously worked for a single-manager value fund for a few years, and it kind of scares me to think about acquiring a stake in a hedge fund as an outside investor. There is a lot of key man risk, especially if it's a fund with one main portfolio manager, That PM is probably your biggest marketing asset, meaning a good chunk (if not most) of the AUM might walk out the door if they leave. Given this negotiating leverage they would have, these PMs would be quite expensive to employ. I would assume acquiring a minority or majority stake in the fund would also make it very hard to keep incentives aligned with the PM as well. As others have said, it's hard to envision a win-win scenario where you had the opportunity to purchase this stake when things weren't seriously wrong at the fund. I think I would personally much rather own an ETF!

Will be highly dependent on volatility of asset class, macro, and the 2/20 income stream