Private equity is mostly rule bending.

First the managers get to keep a cut monthly and perpetually roll it over tax free. Only their withdrawals are tax events.

Second they are free of most legal limits on investment company's.

Third is the only one good for the investor is all returns get turned into long-term capital gains, even short lived speculative moves.

That money needs to be fully at risk so not for humble peons, who might miss if it there are losses.