GLOBAL PRIVATE MARKETS AND ALTERNATIVE INVESTMENTS NEW 2025
Private Markets, Alternative Investments, Private Equity, Stock valuation, CFA, Capital Market, M&A
GLOBAL PRIVATE MARKETS AND ALTERNATIVE INVESTMENTS NEW 2025 free download
Private Markets, Alternative Investments, Private Equity, Stock valuation, CFA, Capital Market, M&A
Private Markets and Alternative Investments
A private market is an investment space reserved for qualified investors where they can buy shares in unlisted companies. These companies do not make their financial information public, so only those who are authorized to know how they are doing. Private markets generally have higher transaction costs, a lower number of buyers and sellers, information is not fully disclosed between parties, and prices are often determined by negotiation rather than public markets. These requirements result in a much lower frequency of transactions in Private markets, which means less volatility in asset values. Therefore, volatility is much lower and less likely to occur than in public investments.
An alternative investment is a financial asset that does not fall into the traditional investment categories. Traditional investments include stocks, bonds, and currencies. Most alternative investments are held by institutional investors or the ultra-high-net-worth individuals, due to their complexity, poor regulatory status, and high risk. Alternative investments include: private equity funds, venture capital funds, hedge funds, futures funds, art, antiques, commodities, or derivatives. Real estate is also listed as an alternative investment.
The Private Markets and Alternative Investments Certificate provides a comprehensive review of critical terminology and concepts. Understand the key features and differences between private equity, private credit, real estate and infrastructure, commodities, and hedge funds.
The Private Markets and Alternative Investments Certificate
Topic 1: Introduction to Private Markets and Alternative Investments
1. Explain the various roles that private markets and alternative investments play in multi-asset portfolios.
2. Discuss key investment considerations for allocating funds to private equity, private debt, hedge funds, commodities and natural resources, real estate and infrastructure.
3. Describe the potential benefits and challenges associated with investing in private markets and alternative investments.
Topic 2: Private Equity and Private Credit Investments
1. Candidates will gain an understanding of the features and characteristics of private equity and private credit investments.
2. Candidates will gain an understanding of value creation, costs and risks, fund structures, terms and interpreting performance of venture capital and buyout private equity investments.
3. Candidates will gain an understanding of value creation, costs and risks, fund structures, terms and interpreting performance of various private lending and credit investments.
Topic 3: Real Estate and Infrastructure Investments
1. Candidates will be able to explain the characteristics and features of the various investment structures of real estate and infrastructure as asset classes.
2. Candidates will be able to explain the sources of return, risks, and diversification benefits from both direct and indirect investments in real estate and infrastructure.
3. Candidates will be able to discuss the due diligence and valuation processes for both asset classes.
Topic 4: Commodities and Natural Resources Investments
1. Candidates will be able to compare the characteristics of different commodity and natural resources sectors and understand their life cycles from production to consumption.
2. Candidates will gain an understanding of the types of participants, returns and risks in commodity futures markets and analyze the relationship between spot and futures prices.
3. Candidates will gain an understanding of the use of commodity derivatives, such as futures and swaps, to obtain or modify exposures to commodities and evaluate their risk and return implications.
Topic 5: Hedge Fund Investments
1. Candidates will gain an understanding of the features, forms and structures, and risk and return characteristics of hedge fund investments.
2. Candidates will gain an understanding of equity-related, event-driven, relative value, opportunistic, and multi-manager hedge fund strategies.
3. Candidates will gain an understanding of performance appraisal issues, calculating and interpreting investment returns, and performing diligence of hedge fund investments.
