Code of Ethics in Defining a Profession
The role of ethics within the investment profession is to promote the integrity and viability of global capital markets for the ultimate benefit of society. By learning and committing to that code of ethics, each professional contributes to a universal…
Ethics Defined
Many professions define a code of ethics aimed at outlining cultural values within that profession. For the investment industry, ethics are defined as a standard of conduct valued by the financial sector. These can be expressed via concrete rules of behavior…
Investment Ownership and Compensation Structures used in Alternative Investments
Alternative investment structures are complex due to the illiquidity, complexity, and long-term nature of these investments. These structures are designed to bridge potential gaps between manager and investor interests. They explicitly address the roles and responsibilities of both parties to…
Direct investment, Co-investments and Fund Investment Methods Comparison
Alternative Investment Methods Investors have three primary methods of accessing alternative investments. These methods are: Fund Investment: This is the first method where investors put their money into a fund, such as a Private Equity (PE) fund. For instance, an…
Features and Categories of Alternative Investments
Alternative investments represent a category of investments that do not fit into the traditional asset classes of public equity securities, fixed-income instruments, or cash. The term ‘alternative’ is used to describe these investments due to their unique characteristics and structure….
Calculation and Interpretation of Alternative Returns Before and After Fees
Hedge Fund Strategies and Management In discussing alternative investment returns, consider hedge funds. Hedge funds employ intricate strategies to generate high returns with low correlation to the broader market. These strategies necessitate the use of sophisticated portfolio management tools and…
Performance Appraisal of Alternative Investments
Alternative Investments: Features, Form, and Structure Alternative investments, such as hedge funds, private equity, and real estate, possess unique characteristics that must be considered when assessing their performance relative to other investments or more traditional asset classes like stocks and…
Diversification Benefits Private Capital Provides
The performance of private debt and equity investments is primarily influenced by the particular stage of a company’s life cycle, its performance, and the associated risks. Consequently, it may not be appropriate to directly compare them with public debt and…
Features and Investment Characteristics of Private Debt
Private debt refers to the various forms of debt provided by investors directly to private entities. The expansion of the private debt market in the past decade has been largely driven by private lending funds. After the 2008 financial crisis,…
Features and Investment Characteristics of Private Equity
Private capital refers to the funding provided to companies not sourced from public markets or traditional institutional providers such as government or banks. Private capital consists of private equity and private debt. Private Equity Private equity is an investment in…
