What Is the CAIA Exam

Want to dive into alternative investments? With a growing demand for alternative assets, now is a time like no other to explore a career in this rapidly expanding field. If you plan to work within hedge funds, private equity or real assets, then the CAIA might just be your door to success.

This guide covers everything you’ll want to know about the CAIA exam-from course details to pass rates to help you decide whether this is the right path for you. Let’s jump in!

What is The CAIA Designation?

CAIA Association offers this globally known designation. CAIA is for investment professionals specialising in alternative investments: hedge funds, real assets, private equity, and more.

You need to pass two challenging levels of exams to receive the CAIA qualification. You should have deep knowledge of specific specialities to achieve this certification.  CAIA is an extremely desirable qualification in contemporary finance and is highly valued by employers.

Summary of CAIA Course Details

CAIA certification comes in two levels and generally takes about 200 hours of study. Here is a quick overview:

CAIA Level 1: 200 multiple-choice questions focus on the fundamental concepts of alternative investments and asset classes.

CAIA Level 2: There are 100 multiple-choice questions and three essay questions, which explore more advanced topics such as risk management and asset allocation.

The exams are conducted at Pearson VUE test centres twice a year: once in the month of March and another in September. The test centres are established all over the world.

CAIA Pass Rate Since 2010

The pass rates for the CAIA exams vary over the years:

Level 1: Approximately 61% average since 2010 though declining lately.

Level 2: Fluctuates around 63%, with some cyclical activities but is in general relatively more stable compared to Level 1.

Pass rates for the latest session stand at 46% Level 1 and 59% Level 2, both from March 2024.

CAIA Topics

CAIA Level 1

CAIA Level 2 

What is The Fee of CAIA?

For 2025, the CAIA fees consist of a one-time enrolment fee and a variable exam registration fee. Here is the detailed break-up:

CAIA Exam Cost of Level I (First-Time Candidates)

Enrolment Fee: US $ 400 (non-refundable, one-time fee)

Early Registration Fee: US$995 includes digital curriculum

Registration Fee: US$1,395 includes digital curriculum

Total Early Registration (Level I): US$1,395 (Enrolment + Early Exam Fee)

Total Standard Registration (Level I): US$1,795 (Enrolment + Standard Exam Fee)

CAIA Exam Cost of Level II 

Early Registration Fee: $995-includes digital curriculum

Standard Registration Fee: $1,395-includes digital curriculum

Total Early Registration (Level II): $995

Total Standard Registration (Level II): $1,395

Level II CFA Stackers (CFA Designation Holders)

Early Registration Fee: $995-includes digital curriculum

Standard Registration Fee: $1,395-includes digital curriculum

Retake Candidates (Level I & II)

Exam Fee: $795

CAIA – Exam Dates & Registration Deadlines

March 2025 Exam Cycle

Registration Open: October 14, 2024

Early Registration Deadline: December 9, 2024

Final Registration Deadline: February 3, 2025

Level I Exam Window: March 3, 2025 – March 14, 2025

Level II Exam Window: March 17, 2025 – March 28, 2025

September 2025 Exam Cycle

Registration Open: April 14, 2025

Early Registration Deadline: June 9, 2025

Final Registration Deadline: August 4, 2025

Level I Exam Window: September 1, 2025 – September 12, 2025

Level II Exam Window: September 15, 2025 – September 26, 2025

CAIA Charter: Requirements

To achieve the CAIA designation, candidates must accomplish the following requirements:

Passing Both CAIA Exams: Pass both the Level 1 and Level 2 CAIA exams.

Experience: The candidates should have at least one year of work experience in alternative investments. Alternatively, they should have four years of professional experience in any industry.

Adhere to Ethical Practices: Accept the CAIA Association member agreement and adhere to its Code of Ethics.

Become a member of the CAIA Association: Pay the annual membership fee usually $ 350 and stay in good standing with continuing education requirements.

CAIA Designation: Benefits

Acquiring the CAIA designation significantly develops opportunities in so many areas, especially for professionals in the alternative investments space. Here are several benefits associated with the charter:

Specialisation in Alternative Investments: The CAIA charter mainly specialises in areas that include private equity, hedge funds, and real assets; giving you a niche skill set.

Global Recognition: The CAIA designation is acknowledged all over the world. Thus making it suitable for candidates who seek international finance careers.

Career Advancement: CAIA charter holders are well-positioned in their careers; they compete for high positions in asset management firms, hedge funds, private equity firms, and institutional investor roles.

Networking Facilitates: The members of the CAIA Association get access to global network professionals, industry events, and continuing education programs.

Credibility and Trust: The CAIA charter qualification showcases employers and clients that you have in-depth knowledge and hold up high ethical standards in alternative investments.

Which is Better CAIA or CFA?

Depending on your career goals, you will choose either a CAIA or a CFA certification. The comparison below will guide you on which is better suited for your needs:

Focus

CAIA: Concentrates on alternative investments, including hedge funds, private equity, real estate, and commodities. Therefore, if you prefer asset management, hedge funds, or private equity, this is likely a better pick for you.

CFA: It gives more of a mainstream feel to the traditional investments in equities, fixed-income, and investment portfolio analysis. This one is targeted toward individuals who wish to work in equity research, corporate finance, or wealth management.

Exam Details

CAIA: Two-level exams that take after the subjects from the alternative investment topic

CFA: Three-level exams that cover a wide topic area in ethical practices, economic global services, financial reporting, quantitative methods, and overall portfolio management.

Time Required

CAIA: It takes around 200 hours of study for each level of exam, thus relatively less time-consuming than CFA.

CFA: CFA requires approximately 300 hours of study per level of exam. Since there are three levels, you are spending significantly more time studying for CFA.

Industry Demand

CAIA: Increasing demand in the alternative investment space, especially in hedge funds, private equity, and institutional asset management.

CFA: Well-known and in high demand within the traditional finance sectors of asset management, investment banking, and corporate finance.

Pass Rates

CAIA: The average pass rates are relatively higher around 60 per cent. Thereby making it somewhat easier to pass than the CFA exams.

CFA: Pass rates are relatively low at around 40-50 per cent, which reflects a more general and challenging scope.

If your area of interest is in alternative investments, hedge funds, or private equity, a CAIA designation will help you navigate better towards your career goals. If you aim to work in equity research, corporate finance, or portfolio management, then CFA will be the more comprehensive of the two options.

CAIA Charter holders: Steps to Become One

The CAIA charter is thought of as the most distinguished professional certification for professionals involved in alternative investments. It involves passing a challenging exam, plus some membership requirements. Here’s a step-by-step on how you become a CAIA Charter holder:

Step 1 – Pass the CAIA exams at Level 1 and Level 2

To acquire a charter of CAIA, one should pass level I and level II examinations with success. There are different concentrations at these levels and subjects to test the knowledge of a candidate in alternative investments and related areas.

Step 2 – Earn a Degree or Gain Experience

Applicants for this course should have a bachelor’s degree or have experience in finance/investment. The CAIA Association insists on at least four years of experience in the financial sector or equivalent education.

Step 3 – Obtain Two Professional References

Candidates must also provide the names of two professional references so that the potential sponsor can verify their character, professional experience and suitability for the CAIA designation. Ideally, these should be senior colleagues or individuals from your professional network.

Step 4 – Join CAIA by Applying for Membership

After passing the exams and gaining work experience, candidates are permitted to apply for membership in the CAIA Association. They get a chance to access the global network of CAIA professionals and other benefits of the CAIA member.

Step 5 – Accept the CAIA Association Membership Agreement’s Terms and Conditions

Candidates are to agree to the terms and conditions of the CAIA Association Membership Agreement. Including following high ethical standards, professional standards, and other conditions that require them to attend ongoing continuing education.

Conclusion 

Getting the CAIA charter is a significant milestone in your alternative investment career. From mastering hedge funds and private equity to an understanding of structured products and real assets, the CAIA charter gives you deep knowledge of the industry as well as international recognition. If you are interested in alternatives and have the intention of enjoying a fulfilling challenge, then being a CAIA Charterholder would make a difference in your professional career.

FAQ on What Is the CAIA Exam

Do CAIAs have more difficulty than CFAs?

While CAIA and CFA are both challenging. CAIA does cover much more of the finance, whereas CAIA has an aim on particular alternative investments.

Can CAIA be worth it in India?

Yes, CAIA qualification is becoming more valuable for professionals in finance and investments since the alternative investment market is growing in India. 

Is it possible to do CFA and CAIA at the same time?

Yes, but it can be brutal as both exams require significant preparation and dedication.

Can I pass CAIA easily?

Passing CAIA requires work, study, and an understanding of alternative investments. With proper preparation, you will pass the exams easily. 

CAIA courses last how long?

CAIA exams are offered twice a year, and the estimated preparation time ranges from 200-400 hours per level.

Anant Bengani, brings expertise as a Chartered Accountant and a leading figure in finance and accounting education. He’s dedicated to empowering learners with the finest financial knowledge and skills.