Should You Take Both CAIA Levels Within One Year? Pros & Cons
- Dimitri Dangeros, CFA, CAIA
- Aug 11
- 4 min read
The Chartered Alternative Investment Analyst (CAIA) designation has become increasingly valuable for finance professionals seeking expertise in alternative investments. With the program consisting of only two levels compared to the CFA's three-level structure, many candidates wonder whether they should tackle both CAIA levels within a single year. This comprehensive analysis examines the pros and cons of this accelerated approach based on the latest program developments and industry insights.
Understanding the CAIA Exam Structure
The CAIA certification requires candidates to pass both Level I and Level II examinations, with exams offered twice annually in March and September. As of 2025, the CAIA Association has implemented substantial curriculum revisions, particularly to Level II, which was reorganized to improve the natural flow of readings and better emphasize essential top-down concepts. The program also introduced new readings on infrastructure, reflecting the evolving alternative investment landscape.
Each level typically requires 200-400 hours of preparation time, with most candidates averaging 250-300 hours per level according to CAIA Association feedback. The exams are primarily computer-based testing (CBT) conducted in-person, with online proctored exams now only available as accommodations requiring CAIA's approval.
The Pros of Taking Both Levels in One Year
Momentum and Knowledge Retention Should You Take Both CAIA Levels Within One Year
Taking both levels within one year allows candidates to maintain study momentum and capitalize on knowledge overlap between levels. Since Level II builds upon Level I concepts, tackling both consecutively can reinforce understanding and reduce the need to relearn foundational material. This continuity is particularly beneficial given the interconnected nature of alternative investment topics.
Career Acceleration
Completing the CAIA designation in one year provides significant career advantages. In today's competitive finance environment, professionals can position themselves for advanced opportunities sooner, potentially leading to faster salary increases and enhanced credibility with clients and employers. The alternative investment sector's continued growth makes the CAIA designation increasingly valuable, and early completion can provide a competitive edge.
Cost Efficiency
From a financial perspective, completing both levels within one year can be more cost-effective. Registration fees, study materials, and potential travel expenses are consolidated into a shorter timeframe. Additionally, the opportunity cost of extended study periods is minimized, allowing professionals to focus on career advancement sooner.
Favorable Pass Rates
CAIA exams historically show more favorable pass rates compared to other finance certifications, with rates typically ranging from 50-69%. This suggests that with adequate preparation, ambitious candidates have a reasonable chance of success when attempting both levels in one year.
The Cons of Taking Both Levels in One Year
Intense Time Commitment
The most significant challenge is the substantial time commitment required. With each level demanding 250-300 hours of preparation, candidates must dedicate 500-600 hours of study time within a compressed timeframe. This translates to approximately 15-20 hours per week over a full year, assuming consistent study patterns. For working professionals, this intensive schedule can lead to burnout and negatively impact work performance and personal relationships.
Limited Recovery Time
The current exam schedule provides only a brief window between Level I (September 1-12, 2025) and Level II (September 15-26, 2025) within the same testing cycle. This leaves virtually no time for additional preparation if Level I results are unsatisfactory, as Level II results take up to eight weeks to be released compared to five weeks for Level I.
Higher Risk of Failure
Attempting both levels simultaneously increases the risk of failure on one or both exams. If a candidate fails Level I, they cannot proceed to Level II, essentially wasting preparation time and registration fees for Level II. The constructed response portion of Level II adds complexity, requiring different preparation strategies and extensive practice that may be compromised when split between both levels.
Quality of Preparation
Dividing attention between two levels may result in superficial understanding rather than the deep comprehension necessary for long-term professional application. The 2025 curriculum updates, particularly the reorganization of Level II, require thorough understanding of new material and concepts that benefit from focused study time.
Strategic Considerations for 2025-2026
Given the September 2025 exam dates and the substantial curriculum changes, candidates considering both levels should evaluate several factors:
Professional Experience Requirements
Remember that CAIA certification requires relevant professional experience in addition to passing both exams. Candidates should ensure they can meet these requirements alongside their exam timeline.
Study Resources and Support
With the updated curriculum, ensure access to current study materials and consider whether professional instruction or study groups might be necessary to manage the increased workload effectively.
Alternative Timeline Options
The bi-annual exam schedule allows for alternative approaches, such as taking Level I in March and Level II in September of the same year, providing additional preparation time while still completing both levels within one calendar year.
Expert Recommendations
Finance education experts suggest that candidates with strong academic backgrounds in finance, substantial alternative investment experience, or previous success with intensive certification programs are better positioned for the one-year approach. However, those new to alternative investments or with limited study time should consider a more measured approach.
The decision should also factor in current career demands, personal circumstances, and long-term professional goals. Some professionals may benefit more from taking additional time to deeply understand the material, particularly given the practical application requirements of alternative investment management.
Taking both CAIA levels within one year is achievable but demands exceptional dedication and strategic planning. While the accelerated timeline offers clear advantages in terms of career advancement and knowledge retention, it requires significant personal sacrifice and carries increased risks.
Candidates should honestly assess their available study time, current knowledge base, and personal circumstances before committing to this intensive approach. Success depends not just on passing the exams but on gaining the deep understanding necessary for effective professional practice in alternative investments.
For those who decide to pursue this path, meticulous planning, consistent study habits, and realistic expectations about the time commitment are essential for success. Remember that the CAIA designation's value lies not just in obtaining the credential quickly, but in developing the expertise to excel in the growing alternative investment industry.
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