Practice Test GeeksCAIA - Chartered Alternative Investment Analyst Association Practice Test
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CAIA Alternative Investment Vehicles Flashcards

6 cards from real CAIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What distinguishes a closed-end fund from an open-end fund in the context of alternative investments?

    Answer: Closed-end funds issue a fixed number of shares and trade on exchanges

    Closed-end funds raise a fixed amount of capital through an IPO and shares trade on secondary markets, potentially at a premium or discount to NAV.

  2. Which vehicle allows accredited investors to gain exposure to private equity without the long lock-up of a traditional PE fund?

    Answer: Interval fund investing in PE secondaries

    Interval funds investing in PE secondaries offer periodic liquidity windows, reducing the typical 10-year lock-up associated with direct PE fund commitments.

  3. A co-investment opportunity in private equity refers to:

    Answer: An LP investing directly alongside the GP in a specific deal outside the main fund

    Co-investments allow LPs to invest directly in specific deals alongside the GP, typically with reduced or no fees on that co-invest capital.

  4. Which structure is typically used for infrastructure investments requiring long-dated, stable cash flows?

    Answer: Listed infrastructure fund or unlisted core infrastructure fund

    Infrastructure investments are typically held in listed infrastructure funds or unlisted core funds that match the long-duration, stable cash flow nature of infrastructure assets.

  5. What is the primary regulatory framework governing private fund advisers with over $150 million AUM in the United States?

    Answer: Investment Advisers Act of 1940 with SEC registration

    Private fund advisers managing over $150 million must register with the SEC under the Investment Advisers Act of 1940 and comply with Form ADV and other reporting requirements.

  6. A liquid alternative fund (liquid alt) is best described as:

    Answer: A registered investment vehicle (e.g., '40 Act fund) employing hedge fund-like strategies with daily liquidity

    Liquid alts are registered funds under the Investment Company Act of 1940 that offer hedge fund strategies (long/short, managed futures) with daily liquidity for retail investors.