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Currently Playing: Alternative Investment Features Methods Structures–Module 1-ALTERNATIVE–CFA® Level I 2026

Get our FREE CFA Level 1 summaries: https://www.finquiz.com/cfa/level-1/summary 🏝️ Alternative Investments = Where Finance Gets Wild Hedge funds, real estate, private equity, commodities—Alt Inv is the “cool kid” of the CFA curriculum. But don’t get it twisted: this section will trip you up if you’re not ready. That’s where FinQuiz steps in. 📚 Battle-Ready Summaries – Liquidity risk? Due diligence? Fee structures? We've decoded it for you 🧩 👉 https://www.finquiz.com/cfa/level-1/summary/ 📖 Stanley Notes – Understand the real mechanics of private equity, REITs, and hedge fund strategies 🎯 👉 https://www.finquiz.com/cfa/level-1/notes/ 📐 Formula Sheet – IRR, NAV, and real estate valuation methods—tight, clean, and test-day ready 👉 https://www.finquiz.com/cfa/level-1/formula-sheet/ 🎯 Question Bank – Tackle real-style questions that blend Alt Inv theory with CFA logic traps 👉 https://www.finquiz.com/cfa/level-1/question-bank/ ⏱️ Mock Exams – Practice like it’s exam day—Alt Inv questions included 👉 https://www.finquiz.com/cfa/level-1/mock-exam/ 📦 All-in-One CFA Level 1 Access 👉 https://www.finquiz.com/cfa/level-1/ 🚀 Go Premium – Get full access, smart structure, and review tools to own Alt Inv 👉 https://www.finquiz.com/cfa-level-1-study-packages/ Timestamp Chapter 00:00 Introduction to Alternative Investments 00:59 Defining Alternatives & Why Use Them 02:15 Access Routes: Funds, Co-Investments & Direct Deals 02:39 Key Characteristics: Due Diligence, Diversification & Fees 04:05 Private Capital: PE, Private Debt, VC & Distressed Debt 06:31 Real & Commodity Assets: Real Estate, Infrastructure, Resources 09:11 Digital Assets & Hedge Funds 12:04 Investment Vehicles: Fund vs Co-Investment vs Direct 18:03 Fund Structures: LPs, GPs & Legal Vehicles 23:55 Fee Models & Profit-Waterfall Mechanics 31:20 Conclusion & Next Steps Unlock the fundamentals of alternative investment performance and returns in this first module tailored for CFA® Level I candidates for 2025 and 2026. We cover the unique features that make measuring performance in alternative assets – like longer horizons, illiquidity, complex cash flows, leverage, and multi‑layered fee structures – a challenging yet essential skill Dive deep into critical performance metrics, including: Internal Rate of Return (IRR) – accounts for timing of cash flows and essential for private equity & real estate Multiple of Invested Capital (MOIC) – offers a quick snapshot of total return on capital J‑curve effect – visualizes the early dip and later growth in private capital deployments What you'll learn: Why traditional risk metrics like Sharpe ratio may not apply effectively  How leverage amplifies returns and risks in hedge funds & real estate  The pitfalls of valuation in illiquid or model-dependent assets  The impact of complex fee structures: management fees, incentive fees, high‑water marks, and hurdle rates  Practical guidance on calculating pre‑ and post‑fee returns, aligned with CFA LOS for Level I candidates