Buyout vs VC special Div

Hey, I’m looking over some 7city notes my mate has and they mention a difference between Venture Capital and Buyout Funds being that Buyout funds can exit through a special dividend whereas VC can’t. I’m guessing they mean a dividend recapitalisation but I wasn’t aware VC’s can’t do this. Can anyone comment?

special dividend is when the issue debt to pay a multiple of what the Buyout funds put into the company initially… In other words they borrow to pay themselves a special dividend.

I dont think its “can’t” so much as it is “can’t” Typical VC company investments don’t have the capital to do a dividend that a buyout fund company would.