A survey of Chartered Alternative Investment Analyst (CAIA) members revealed that 90 percent feel that their CAIA designation has helped them better serve the end investor. The CAIA program boasts 13,000 charterholders globally and prepares candidates for careers in investment management, portfolio management, and executive-level finance positions, focusing on alternative investment roles.

Aligned thought leaders, coming together

As the alternative investment industry continues to evolve, the knowledge base of alternative investment professionals must grow with it. In response to this demand, CFA Institute and the CAIA Association have developed the Stackable Credential Program to acknowledge the increased demand for alternative investment education and better serve CFA charterholders who want to expand their breadth of knowledge.

CFA Institute and the CAIA Association have aligned missions, promoting the highest standard of ethics, education, and professional excellence for the ultimate benefit of society. The CAIA Association develops and administers the standards, curriculum, and certification process for the CAIA program.

The CAIA Program for CFA charterholders

The CAIA Program follows a learning process that CFA charterholders will be familiar with. Study commitment time varies by individual, but the CAIA Association estimates around 200 hours of study for the CAIA Level II exam. The CAIA Program is rigorous and requires a disciplined study effort similar to the CFA Program. The Level II exam is a four-hour computer-administered exam split into two sections. The first section of the exam contains 100 multiple-choice questions, and the second section includes three multi-part constructed-response (essay) questions. The CAIA Association notes that the exam is predominately qualitative, with less than 30 percent of questions requiring calculations.

Table 1:

 The CFA-CAIA Stackable Credential Program offers existing CFA charterholders:

• Industry credibility in an increasingly competitive and complex industry sector
• Access to specialized curriculum focused on the latest alternative investment practices and strategies
• Continued professional development to build specialized alternative investment knowledge in addition to the broad investment knowledge gained from the CFA Program
• Career enhancement through expanded knowledge and distinction

CFA charterholders attaining their waiver

The CFA-CAIA Stackable Credential Program allows qualified candidates to utilize their acquired knowledge and credentials from the CFA Program to move directly to the CAIA Program’s final level (Level II). To be eligible for the program, candidates must:

• Have no prior CAIA exam history
• Be a CFA charterholder in good standing
• Have a verifiable CFA Institute digital badge 
• Apply and register for the program during the appropriate CAIA exam registration periods with the year they became a charterholder and the name of the local CFA Society where membership is held

Individuals who achieve the CAIA charter through the CFA-CAIA Stackable Credential Program will receive the same membership benefits and qualifications as all other CAIA charterholders. The complete Stackable Credential Program overview and eligibility criteria are available on the CAIA website.

Conclusion

The alternative investment industry continues to grow as institutional and retail investors increase their allocation to alternative strategies, such as real estate, private equity, cryptocurrency, and hedge funds. If you are a CFA charterholder working within the alternative investment industry or looking to enter the sector, pursuing the CAIA charter can help you set yourself apart from other candidates in an increasingly competitive job market. The CFA-CAIA Stackable Credential Program is a unique opportunity for CFA charterholders to elevate their investment education, professionalism, and credibility in the alternative investment space. 

Information about the CAIA Program is sourced from:CAIA Association. CAIA Level II Study Guide. CAIA Association, March 2022.