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Alternative Investments

Expanding Frontiers

Alternative Investments
This book is 50% completeLast updated on 2026-09-14
+23,206 words in the last 30 days

Alternative investments are no longer “alternatives.” This book shows how they really work, and how to analyze them with clarity, rigor, and modern data-driven insight.

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About

About

About the Book

Alternative Investments: Expanding Frontiers provides a modern, analytically grounded introduction to the rapidly evolving world of alternative assets. Bridging academic research, institutional practice, and data-driven analysis, the book goes beyond asset-class definitions to explore how alternatives actually function within portfolios.

Readers are guided through private markets, hedge fund strategies, real assets, and liquid alternatives with a focus on return drivers, risk mechanics, structural design, and empirical evaluation. The text emphasizes intuition, transparency, and practical implementation thereby showing how modern quantitative tools and data can be used to assess performance, manage risk, and make informed allocation decisions.

Designed for graduate students, investment professionals, and analytically minded practitioners, the book balances conceptual clarity with real-world relevance, preparing readers to think critically about alternatives in an increasingly complex investment landscape.

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About the Author

Kathryn Wilkens, PhD, CAIA

Kathryn Wilkens is a quantitative researcher, educator, and product builder whose work sits at the intersection of alternative investments, data science, and financial technology. She is the founder of Pearl Quest, LLC, where she develops research-driven analytical frameworks and forecasting systems designed to translate complex data into actionable investment insight.

With more than 25 years of experience across finance, education, and quantitative research, Kathryn is known for making advanced methods, such as generalized additive models, mutual information–based feature selection, and machine-learning pipelines, both practical and interpretable for professional investors. Her work emphasizes rigor, transparency, and real-world applicability.

Kathryn teaches in the Master of Financial Analysis program at Rutgers Business School, where she helps graduate students bridge financial theory, empirical research, and modern quantitative implementation.

Previously, she served as Curriculum Director at CAIA Association and as an advisor to the Financial Data Professional (FDP) program, contributing to the development of global education standards in alternative investments and financial data analytics. She is a research associate with the Center for International Securities and Derivatives Markets (CISDM) and has authored peer-reviewed articles and more than 40 published research summaries connecting academic research with practitioner decision-making.

Beyond finance, Kathryn serves as Treasurer and on the Board of Directors of the Coalition to End Homelessness, where she applies systems thinking and analytical insight to community-level challenges.

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Contents

Table of Contents

PREFACE

  1. Why Study Alternative Investments?
  2. Why This Book Is Different
  3. A Living Text in a Living Market
  4. Release and Update Philosophy
  5. Who This Book Is For
  6. How to Use This Book
  7. Transparency and Ethics
  8. Looking Ahead

Revision History

Chapter 1: Introduction to Alternative Investments

  1. 1.1 What Are Alternative Investments?
  2. 1.2 Public and Private Capital Markets
  3. 1.3 Why Institutions Allocate to Alternative Investments
  4. 1.4 Market Size and the Growth of Alternative Investments
  5. 1.5 Overview of Major Alternative Investment Categories
  6. 1.6 Introduction to Fund Structures
  7. 1.7 How Are Alternative Investments Different?
  8. Chapter 1 Summary: Alternative Investments
  9. Review Questions
  10. Discussion Questions
  11. References

Chapter 2: Private Equity

  1. 2.1 What is Private Equity?
  2. 2.2 Who Invests in Private Equity? And Why?
  3. 2.3 How Private Equity Creates Value (GP Lens)
  4. 2.4 Risk, Illiquidity, and the Role of Leverage
  5. 2.5 Measuring Returns in Private Equity
  6. 2.6 The J-Curve in Private Equity
  7. 2.7 Fees, Terms and the Cash Waterfall
  8. 2.8 Benchmarks, Indices, and Liquid Alternatives in Private Equity
  9. Chapter 2 Summary: Private Equity
  10. Review Questions
  11. Discussion Questions
  12. References
  13. Appendix 2A: 2026 Private Equity Trends
  14. Appendix 2B: Secondary Markets (Optional Material)

Chapter 3: Private Credit and Distressed Debt

  1. 3.1 What Is Private Credit?
  2. 3.2 Floating Rates and Interest Rate Risk
  3. 3.3 Who Invests in Private Credit and Why?
  4. 3.4 The Private Credit Opportunity Set
  5. 3.5 Return Generation in Private Credit
  6. 3.6 Capital Structure, Seniority, and Covenants
  7. 3.7 Measuring Credit Risk
  8. 3.8 Fund Structures, Investor Access, and Benchmarks
  9. Mini-Case: The Other Side of the Buyout
  10. Chapter 3 Summary: Private Credit
  11. Review Questions
  12. Discussion Questions and Exercises
  13. References
  14. Appendix 3A: Private Credit Trends

Chapter 4: Commercial Real Estate

  1. 4.1 What is Real Estate as an Alternative Investment?
  2. 4.2 Who Invests in Real Estate and Why?
  3. 4.3 How Returns Are Generated in Real Estate
  4. 4.4 Real Estate Equity Styles
  5. 4.5 Valuation Approaches in Real Estate
  6. 4.6 Risk, Illiquidity, and Return Measurement in Real Estate
  7. 4.7 Investment Vehicles, Benchmarks, and Indices in Real Estate
  8. Chapter 4 Summary: Real Estate as an Alternative Investment
  9. Review Questions
  10. Discussion Questions
  11. References
  12. Appendix 4A: Commercial Real Estate Trends

APPENDIX A: Performance Measurement for Alternatives

  1. Return Calculation
  2. Ex-post Absolute Risk Measurement
  3. Ex-post Risk-Adjusted Return Measurement
  4. Performance Measurement
  5. Reference
  6. Resources

APPENDIX B: Key Equations

  1. Private Equity
  2. Private Credit & Distressed Debt
  3. Real Estate
  4. Real Assets
  5. Hedge Funds
  6. Structured Products
  7. Supplementary Formulas: Basic Investment and Statistics

GLOSSARY

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