CAIA Level 1 Exam Overview: Topics, Weights & Format (2025)

Dimitri Dangeros, CFA, CAIA
Sep 27
3 min read

The Chartered Alternative Investment Analyst (CAIA) Level I exam serves as the global entry point for professionals aiming to deepen their expertise in alternative investments—spanning hedge funds, private equity, real assets, and emerging areas like digital assets. With its 2025 curriculum updates, the exam continues to reflect the evolving needs of the investment industry.

Exam Structure & Format CAIA Level I Exam Overview: Topics, Weights & Format (2025)

Total Duration: 4 hours
Structure: CAIA Level I Exam Overview: Topics, Weights & Format (2025)
- Section 1: 100 multiple-choice questions, 2 hours
- Optional Break: 30 minutes
- Section 2: Another 100 multiple-choice questions, 2 hours
Question Type: All multiple-choice, with fewer than 30% requiring calculations
Recommended Study Time: 250–300 hours
Recent Pass Rate: Around 48% for the March 2025 session, with historical averages closer to 60%

The format tests not just factual knowledge, but also the ability to apply concepts under time pressure—making disciplined preparation essential.

Topic Areas & Weightings (2025)

The CAIA Level I curriculum spans eight key domains, each with a specific weight range to guide your study focus:

Topic	Weight (%)
Professional Standards & Ethics	15–25
Introduction to Alternative Investments	20–28
Real Assets	11–17
Private Equity	6–10
Private Debt	9–14
Hedge Funds	12–17
Digital Assets	4–8
Funds of Funds	2–6

Weightings directly influence how many questions you will face in each topic area, making them a critical part of study planning.

Topic-by-Topic Breakdown

Professional Standards & Ethics

A cornerstone of the exam, this section emphasizes ethical principles, professional conduct, and the application of the CFA Institute’s Standards of Practice. Strong ethics knowledge can provide an advantage in close-call questions.

Introduction to Alternative Investments

Covers foundational knowledge—definitions of asset classes, market structures, quantitative methods, derivatives, and key performance metrics such as alpha and beta.

Real Assets

Focuses on investments in natural resources, land, commodities, and real estate.

Topics include valuation techniques, income approaches, and risk considerations unique to tangible assets.

Private Equity

Explores fund structures, investment strategies (venture capital, growth, buyouts), governance issues, and value creation processes.

Private Debt

Covers direct lending, mezzanine financing, distressed debt, and the nuances of credit risk analysis.

Hedge Funds

Examines hedge fund industry structure, strategy categories (macro, event-driven, equity hedge, relative value), and performance/risk metrics.

Digital Assets

Introduces blockchain technology, tokenization, cryptocurrencies, and other distributed ledger applications relevant to investment management.

Funds of Funds

Reviews multi-manager investment structures, diversification benefits, fee layering, and performance attribution.

Format & Logistics

Exam Windows: Offered twice a year, typically in March and September
Testing Mode: Computer-based testing with flexible scheduling during the exam window
Calculator Policy: Permitted models include the TI BA II Plus (and Professional) and HP 12C Platinum, with all memory cleared before use

Key Preparation Strategies for 2025

Prioritize by Weight
Allocate study time proportionally—high-weight topics like Introduction to Alternative Investments and Ethics deserve the most attention.
Balance Ethics and Technical Skills
Ethics questions often hinge on nuanced judgment, while quantitative topics require formula mastery. Both demand equal focus to ensure a well-rounded performance.
Simulate the Real Exam
Practice with 100-question blocks under timed conditions. Mimicking the two-hour pacing for each section builds exam-day stamina.
Commit Formulas to Memory
No formula sheet is provided. Understanding and internalizing key equations is essential for calculation-based questions.
Aim Above the Pass Line
Given pass rates around 50%, target a consistent 65%+ on practice exams to create a safe margin for the real test.

The CAIA Level I exam is designed not only to assess technical knowledge but also to ensure candidates can apply it ethically and professionally in real-world investment contexts. By understanding the structure, topic weights, and exam-day expectations, you can approach your preparation strategically—maximizing both efficiency and confidence.

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