Alternative Investment Features, Methods, and Structures — Flashcards

Alternative Investment Features, Methods, and Structures CFA Flashcards - Medical Study Cards

Master Alternative Investment Features, Methods, and Structures with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.

Alternative Investment Features, Methods, and Structures Flashcard Deck - 10 Cards

Flashcard 1: In Alternative Investments (Features & Methods), how does a deal-by-deal (American) waterfall differ from a whole-of-fund (European) waterfall?

Answer: An American waterfall distributes profits as each individual investment is sold. A European waterfall pays no performance fees until LPs have received 100% of their initial investment plus the hurdle rate across the entire fund.

Flashcard 2: In Alternative Investments (Features & Methods), what is the difference between a "soft" hurdle rate and a "hard" hurdle rate?

Answer: With a soft hurdle, performance fees are based on the entire return once the hurdle is met. With a hard hurdle, fees are based only on the return that exceeds the hurdle rate.

Flashcard 3: In Alternative Investments (Features & Methods), what is a "catch-up clause"?

Answer: A provision that allows the GP to receive 100% of gains beyond the hurdle rate until they catch up to their stated performance fee percentage of the overall gains.

Flashcard 4: In Alternative Investments (Features & Methods), what is a "clawback provision"?

Answer: A rule stipulating that if the GP receives incentive payments on early gains that are subsequently negated by later losses, the LPs can recover the excess performance fees.

Flashcard 5: In Alternative Investments (Features & Methods), what is a "high-water mark"?

Answer: A rule ensuring no performance fee is paid on gains that only offset prior losses; the fund's net-of-fees value must exceed its previous historical high.

Flashcard 6: In Alternative Investments (Features & Methods), what is "dry powder" in private capital?

Answer: Committed capital that has not yet been drawn down or invested by the fund manager.

Flashcard 7: In Alternative Investments (Features & Methods), what base is used to calculate management fees for hedge funds?

Answer: Assets under management (AUM), typically the net asset value of the fund's investments.

Flashcard 8: In Alternative Investments (Features & Methods), what is "direct investing"?

Answer: An investor purchases assets themselves without pooling funds or using an outside specialized manager, retaining maximum control but requiring high expertise.

Flashcard 9: In Alternative Investments (Features & Methods), what are the distinct roles of the General Partner (GP) and Limited Partners (LPs) in a limited partnership?

Answer: The GP is the fund manager making all investment decisions and assuming liabilities. LPs are the investors who provide capital and have limited liability but no management control.

Flashcard 10: In Alternative Investments (Features & Methods), what is "fund investing"?

Answer: Investing in a pool of assets alongside other investors, using an outside fund manager who selects and manages the investments.

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Categories of alternative investments

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Investment methods: fund, co-investment, direct

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Partnership structures and the GP-LP relationship

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About Alternative Investment Features, Methods, and Structures Flashcards for CFA

These Alternative Investment Features, Methods, and Structures flashcards are designed for CFA Alternative Investments (Level I) preparation, using active recall to help you retain high-yield concepts, clinical correlations, and commonly tested facts. Each card prompts you to retrieve information from memory rather than passively reviewing notes, which research shows leads to significantly better exam performance.

The 16 cards in this deck cover the most important topics in Alternative Investment Features, Methods, and Structures, including key mechanisms, diagnostic criteria, treatment protocols, and clinical pearls that frequently appear in CFA examinations. Cards are organised by chapter so you can focus on specific areas or work through the entire topic systematically.

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Frequently Asked Questions

Are Alternative Investment Features, Methods, and Structures flashcards free on Oncourse?

Yes, completely free. You can study all 16 Alternative Investment Features, Methods, and Structures flashcards on this page at no cost. For spaced repetition scheduling and progress tracking, download the Oncourse app.

How do flashcards help with CFA preparation?

Flashcards use active recall — instead of passively re-reading notes, you retrieve information from memory. Research shows this builds stronger, longer-lasting memories and is one of the most effective study strategies for medical exams like CFA.

How many Alternative Investment Features, Methods, and Structures flashcards are available?

There are currently 16 flashcards for Alternative Investment Features, Methods, and Structures under Alternative Investments (Level I), organised by chapter. New cards are added regularly to cover the latest CFA syllabus.

Can I study Alternative Investment Features, Methods, and Structures flashcards by chapter?

Yes. The flashcards are organised by chapter so you can focus on specific areas or work through the entire topic systematically. Scroll down to the "Study by Chapter" section to pick a chapter.

What topics do these Alternative Investments (Level I) flashcards cover?

The cards cover high-yield concepts, clinical correlations, diagnostic criteria, treatment protocols, and commonly tested facts from Alternative Investment Features, Methods, and Structures. They mirror the depth and style of CFA questions.

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