I feel like it adds a huge layer of opacity. If you buy a private company, you have to monitor its financials and potentially report them. If you buy a private fund, you have to report the valuation of the fund. If the valuation of the fund just tends to go up (as many such funds do), you won’t necessarily know if this actually reflects the prospects of the underlying companies or just the impression of other investors. The impact of adding these layers is not necessarily efficiency (each layer of management adds more cost), but it is increasing distance from the messy short-term ups and downs of real businesses.