> Pension funds are investing in VCs?

Yes, commonly [1]. At the portfolio level, VC is about as risky as buyout [2].

[1] https://www.thebusinessofvc.com/blog/lp-universe?format=amp

[2] https://timesofe.com/vc-fund-returns-are-more-skewed-than-yo...

There is a lot of literature on how much pension funds are chasing exotic and high-risk investments due to the unexpected longevity of pensioners and persistence, until recently, of low interest rates

example: https://reason.org/commentary/with-interest-rates-low-us-pen...