Alternative Investment Features, Methods, and Structures

Free CFA Level I lesson in Alternative Investments. 12 min read, ~1,797 words.

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 burden). "2 and 20" = 2% management fee plus 20% carry above a hurdle. Waterfall order: return of capital...

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