Flashcards · Finance & Accounting
CAIA Flashcards
Free flashcards for CAIA: flip each card to reveal the definition. Built from the CAIA glossary as a study aid, these are concept checks, not real exam questions.
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All 18 terms
- Alternative investment
- An asset outside traditional stocks, bonds and cash.
- Hedge fund
- A pooled fund using a wide range of strategies, often with leverage.
- Private equity
- Investing in private companies (buyout, venture, growth).
- Private credit / debt
- Lending outside public bond markets, such as direct lending.
- Real assets
- Tangible assets such as real estate, infrastructure and commodities.
- Structured product
- A security built from other assets, often via securitisation.
- General Partner (GP)
- The manager of a private fund.
- Limited Partner (LP)
- An investor in a private fund.
- Carried interest
- The GP's share of profits above a hurdle.
- Hurdle rate
- The return an LP must earn before the GP shares profits.
- J-curve
- The early dip then rise in private-equity returns over a fund's life.
- Illiquidity premium
- Extra expected return for holding hard-to-sell assets.
- Lock-up
- A period during which investors cannot redeem.
- Fund of funds
- A fund that invests in other funds.
- Due diligence
- The review of a manager or investment before committing.
- Alpha
- Return above a benchmark.
- Beta
- Sensitivity of returns to a market factor.
- Vintage year
- The year a private fund starts investing.