If you're looking at a basket of investments from the pension fund level, 90% of that basket is going to be highly predictable risk, derisked in a highly predicable manner. Those same people try to exert that down into VC a little bit by way of LP agreements, typically by way of restrictions. For example for some funds I'm an LP in, they can only target 10% ownership, not more, not less, so by virtue of that, it is an "OPM game" (other peoples money) as one GP at a sandhill road firm once described it as. And it's true, VC is just that: an individual firms standard divination risk environment, derisked by (often only), distributing the risk using an OPM strategy.

This system isn't really great, so your snark is justified, and the reason I know that is true is: pension funds are starting to experiment with cutting out the VC funnel and spinning up venture studios instead (Koru).