Alternative Investments and Liquidity Risk

Free CFP Exam lesson in Investment Planning. 19 min read, ~2,785 words.

1031 exchange: 45 days to identify, 180 days to close (both from sale date), qualified intermediary must hold proceeds. Real property only. Hedge fund fees (2-and-20) consume roughly one-third of gross returns. The high-water mark delays performance fees until the prior peak is recovered. Private equity follows the J-curve: negative...