Why don't all Investment Banks have their own PE division

It seems like a lot of high performing analysts leave IB for PE after 2 or so years. Since PE is a lucrative business, why don't banks set up their own PE divisions to keep the talent internal and expand their revenue stream at the same time? Is it a conflict of interest between sell-side/buy-side, or is PE considered prop trading, which banks aren't allowed to do?

 

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