An association promoting investment education in the alternatives sector says the program allows certain candidates to "stack" credentials and knowledge and move straight to a second-level examination.

A business association that promotes investment education in alternative sectors such as hedge funds and private equity has launched a pilot program for highly accomplished candidates to move straight to a second-level examination.

The program is being rolled out by the Chartered Alternative Investment Analyst Association. Up to 500 candidates, made up of CFA Institute members in good standing, will be able to waive passage of Level I of the CAIA exam and immediately begin preparing for Level II. Upon successfully passing the Level II exam and joining the CAIA Association, candidates earn the CAIA Charter.

The association said it will examine results of the pilot to better understand how to best meet the growing need for education in the alternative investment space, particularly with an audience who has already acquired a base of knowledge.

“The ways in which people work and learn are going through a massive upheaval,” William J Kelly, chief executive of CAIA. “’Stacking’ is a concept we have been closely following in the worlds of both professional credentialing and academia; rolling out a cutting-edge stacking program like this with an excellent collaborator like CFA Institute is something we’re very excited to be able to do,” he said. 

“Asset owners are clearly moving to a multi-asset, multi-service model, requiring today’s professional to be more rounded,” added Kelly. “Credentialing organizations must continue to evolve to meet these changing needs,” he continued.

The pilot program will also be open to students in the soon-to-be-launched Masters in Alternative Investments program at the Isenberg School of Management at the University of Massachusetts Amherst, one of the original founders of the CAIA curriculum. This program was selected for the pilot based on its adoption of the learning curriculum from CAIA’s Level I textbook. In the future, other academic program using CAIA’s curriculum in their teaching may also be added to the stacking initiative.

In the first phase, CAIA will cap enrolment by CFA charter-holders looking to “stack” their credentials within a handful of markets, including most regions of the world. Applicants who meet all of the relevant criteria will be able to register for the September 2018 Level II exam cycle.

The association supports 30 global chapters in financial centres in Europe, Asia-Pacific, and North America, drawing members from more than 90 countries.