First, classify venture capital returns: what we observe is a statistical distribution of outcomes, not a performance engine in itself.
Claiming that the power law is the basis is a category error; it is a descriptive consequence, not a causal cause.
Fundamental factors for a pension fund are decision quality and risk management, not the shape of the distribution.
For example, prudential liquidity constraints or capital requirements in the UK can force asset sales, regardless of their promise of power law returns.