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Why is real estate a restricted sector in LPA?

1 See in Base
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Generally speaking a venture capital fund must pursue a venture capital strategy, because venture capital funds typically rely on a specific exemption from fully registering with the SEC (to avoid much higher levels of reporting and regulatory scrutiny).

One of the requirements of the venture capital exemption is that investments are generally (directly) made into a company in exchange for equity, which may not be typical in real estate (or really what limited partners think of as "venture capital"). 

More information about the venture capital exemption can be found here:

https://www.strictlybusinesslawblog.com/2018/05/31/the-venture-capital-adviser-exemption-explained/

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