Traditional pension funds can learn from the success of US university endowments, such as Yale, which thrive by investing in hedge funds, venture capital (VC), and real estate. With rising inflation impacting yields and increasing pressure to meet long-term obligations, integrating VC into portfolios is crucial. Yale’s asset allocation aims for nearly 12% returns over a decade, significantly outperforming conservative stock-bond strategies. Endowment portfolios typically include diverse assets like hedge funds (23%) and private equity (22%). Despite the challenges traditional funds face regarding liquidity and liabilities, adapting the endowment model could help unlock VC’s potential while managing risks.