Is this different from private equity / distressed asset investing in general, or standard activist investor asset stripping?

All that is missing is loading the company with debt to pay "management fees," to the acquirers before cutting and running, leaving the founders and remaining shareholders with the bill. Organized crime have been known to do this as well. A handbook of investment anti-patterns, common hustles, and ways to identify crappy investors would be really useful.

There seems to be a tier of capital that just needs somewhere to go. It is not allowed to take the direct risks of angel or seed rounds, but can participate in venture funds, or funds of funds that include hedge funds and alternative assets, participate in growth rounds, and some really sketchy penny stock RTOs, but it's like they are prevented from investing while exercising any specific expertise.