[lmm]

I'd worry about less sophisticated "end investors" getting burned. Mutual fund managers know that private equity funds are high risk, but they're getting into them anyway. Do the individuals whose pensions are being invested in Uber know where the money is?

[maxerickson]

The information should be available to them. If the fund does not have a sizable exposure to the particular company, it might only be as a statement in the prospectus that the fund can invest up to a certain amount in a certain type of company.

A flip side of this is that one of the many things that contributed to the housing bubble was the requirement that many pensions have to invest in bonds of a given rating. This helped fuel the market for rubber stamped mortgage derivatives.