Alternative Investment Features, Methods, and Structures

Free CFA Level I lesson in Alternative Investments. 13 min read, ~1,921 words.

Shared features: illiquidity (illiquidity premium), low correlation, skill-dependent returns, limited transparency, and complex fees. Five categories: hedge funds, private capital (PE + private debt), real estate, infrastructure/natural resources, commodities. Three access methods: fund (easy, high fees), co-investment (selective deals, reduced fees), direct (full control, full operational burden). "2 and 20"...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• features methods and structures

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