Financial Education

When considering investing with managers of alternative assets, there are a number of questions that should be answered.

1. What is the market opportunity and why does it exist?
2. Which managers have the best process for exploiting the opportunity and why?
3. Do the managers have the organizational structure needed and is the structure stable?
4. Are the managers and their employees trustworthy?
5. Are the terms and fee structure fair? Are incentives of managers and investors properly aligned?
6. Who are the attorneys, accountants and other support providers?
7. Reading and understanding the prospectus
8. A formal written recommendation

For more information, see all articles on: Active Management, Alternative Assets, Institutional Investing, Portfolio Management

See also:

Types of Alternative Investments

Strategy and Due Diligence for Private Equity Investments

Due Diligence for Hedge Fund Managers

Suitability of Alternative Investments for Private Wealth Clients

The Role of Real Estate in a Portfolio