The fee structure used in private equity, hedge funds, venture capital, private credit, and many real estate funds is famously summarized as “2 and 20.” Although simple in appearance, this model has deep implications for investor returns, manager incentives, and the long-term economics of alternative investing. This article breaks down
Capital calls are one of the most misunderstood mechanics in private equity, venture capital, private credit, real estate, infrastructure funds, and other GP/LP vehicles. Unlike public investments — where you invest all your money upfront — private funds draw capital gradually, over many years. For investors, understanding capital calls is essential.
Long–short strategies were once available only through hedge funds with high minimums and multi-year lockups. Today, a new class of long–short ETFs gives investors access to similar techniques — long positions in attractive assets and short positions in unattractive ones — all in a liquid, low-minimum, exchange-traded wrapper. These ETFs
Alternative investments were once accessible only through private, illiquid funds with high minimums and long lockups. But over the past decade, a new category has emerged that brings alternative strategies into the public markets: liquid alternatives. These vehicles aim to deliver hedge-fund-like or private-fund-like exposure inside structures that allow easier
While most investors are familiar with private funds structured as GP/LP partnerships, far fewer understand a powerful alternative used by pensions, endowments, sovereign wealth funds, and large family offices: the Separately Managed Account (SMA). An SMA is a customized investment vehicle in which a single investor — usually an institution
At the core of nearly every private investment fund—private equity, venture capital, private credit, real estate, infrastructure, and many hedge funds—is a structure that defines how the fund is organized, how decisions are made, and how profits are shared. That structure is the GP/LP model. It is
Private equity (PE) has transformed from a niche investment strategy into one of the dominant forces in global finance. Over the last two decades, assets under management (AUM) in private equity have surged into the trillions, outpacing the growth of public markets and reshaping how companies are built, scaled, and
Investors often turn to alternative assets because they behave differently from stocks and bonds — but the real question is: Do alternatives actually perform better? When we examine long-term performance across major asset classes, a clear pattern emerges: Certain alternatives have delivered higher returns, lower volatility, stronger downside protection, or a
Over the past two decades, pension funds, endowments, sovereign wealth funds, and family offices have dramatically increased their allocations to alternative investments. What began as a niche segment dominated by private equity and hedge funds has now become a foundational pillar of institutional portfolio construction. This article explains why institutions
Alternative assets come in many forms — private equity, real estate, hedge funds, private credit, commodities, collectibles, crypto, and more. But despite their diversity, most alternatives share a common set of defining characteristics that distinguish them from traditional investments like stocks and bonds. These characteristics shape how alternatives behave, how they
Alternative investments have exploded in popularity, but understanding how they differ from traditional assets is essential before allocating capital. Stocks, bonds, and cash remain the foundation of most portfolios, yet alternatives introduce entirely different behaviors, risks, and return patterns. This article breaks down the structural, behavioral, and economic differences between
Alternative investments are one of the fastest-growing segments of modern finance. Once reserved for institutions and ultra-wealthy individuals, they’ve now entered the mainstream as investors search for diversification, inflation protection, and opportunities beyond traditional public markets. This article gives a clear, practical overview of what alternative investments are, why