B
C
P
C
A
P
I
T
A
L
Alternative investment are sometimes defined as any investment that is nontraditional.
Institutional-quality investments exhibit risk and return charactereristics that are acceptable to insitutional investors ,including pension funds, foundations, endowments.
- Real assets
- Hedge Funds
- Private Equity
- Structured Products
Regulatory
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Real AssetsNatural Recources environmental regulations
Infrastructure regulations have substantial influence -
Hedge Fundsexploit differing taxation and regultion among countries
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Private Equity-
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Structured ProductsModerate influence
Securities
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Real AssetsReal estate securitization of cash flows
Commodities driven by trading in futures contracts -
Hedge Funds-
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Private EquityModerate influence
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Structured ProductsUnique cash flow distribution methods(primary differentiator)
Trading
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Real assets-
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Hedge Fundsproprietary active trading strategies (primary differentiator)
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Private EquityModerate influence
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Structured Products-
Compensation
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Real assetsIntellectual property how should owner of rights be compensated
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Hedge Fundsperformance based fees
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Private EquityModerate influence
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Structured ProductsModerate influence
Institutional
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Real assetsReal Estate often privately held insvestments
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Hedge Funds-
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Private EquityNot publicly traded (primary differentiator)
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Structured ProductsModerate influence