What Is the CAIA Level 1 Exam? Format, Topics & Cost (2025 Guide)
- Kateryna Myrko
- Jun 11
- 5 min read
The Chartered Alternative Investment Analyst (CAIA) Level 1 exam is a globally recognized credentialing exam for professionals seeking to demonstrate their expertise in alternative investments. As the alternative investment landscape grows in complexity and importance, the CAIA designation has become a gold standard for those working in hedge funds, private equity, real assets, and related fields. This comprehensive guide covers everything you need to know about the CAIA Level 1 exam in 2025: its format, topics, costs, and practical tips for candidates.
Overview of the CAIA Level 1 Exam
The CAIA Level 1 exam is designed to assess a candidate’s foundational knowledge of alternative investments, with a strong emphasis on professional standards and ethics. The exam is rigorous, reflecting the complexity and breadth of the alternative investment universe, and is updated annually to ensure relevance to current industry practices.
Exam Format and Structure
Number of Questions and Format
The Level 1 exam consists of 200 multiple-choice questions.
The exam is divided into two sections:
Section 1: 100 multiple-choice questions (2 hours)
Break: 30 minutes (optional)
Section 2: 100 multiple-choice questions (2 hours)
Total exam time: 4 hours (excluding the break).
Testing Environment
The exam is delivered at secure test centers worldwide.
Candidates must bring appropriate identification and follow strict security protocols.
Scoring
Each multiple-choice question is equally weighted.
There is no penalty for incorrect answers, so it is advantageous to answer every question.
2025 CAIA Level 1 Exam Topics and Weights What Is the CAIA Level 1 Exam? Format, Topics, Cost
The CAIA Level 1 curriculum is carefully structured to reflect the most current trends and knowledge in alternative investments. The 2025 curriculum includes the following topics, each with a defined exam weight: What Is the CAIA Level 1 Exam? Format, Topics, Cost
Topic | Exam Weight (2025) |
Professional Standards and Ethics | 15% – 25% |
Introduction to Alternative Investments | 20% – 28% |
Real Assets | 11% – 17% |
Private Equity | 6% – 10% |
Private Debt | 9% – 15% |
Hedge Funds | 11% – 17% |
Digital Assets | 4% – 8% |
Funds of Funds | 2% – 6% |
Key Points on Topic Emphasis:
Ethics: The heavy weighting (up to 25%) underscores the CAIA Association’s commitment to professional integrity, mirroring the ethical standards seen in the CFA program.
Introduction to Alternative Investments: As the largest single section, this topic forms the core foundation of the exam, covering the broad landscape of asset classes and investment vehicles.
Emerging Topics: The inclusion of digital assets and funds of funds reflects the evolving nature of the alternative investment industry and the increasing relevance of crypto, blockchain, and multi-manager strategies.
Detailed Breakdown of Exam Topics
Professional Standards and Ethics
Focuses on the CFA Institute Standards of Practice (11th Edition), which are provided free to registered candidates.
Candidates must understand ethical principles, professional responsibilities, and the application of these standards in real-world scenarios.
Introduction to Alternative Investments
Covers the fundamentals of alternative investments, including definitions, characteristics, and the role they play in diversified portfolios.
Topics include hedge funds, private equity, real assets, and structured products.
Real Assets
Explores investments in tangible assets such as real estate, infrastructure, commodities, and natural resources.
Emphasizes valuation, risk, and return characteristics unique to real assets.
Private Equity
Reviews the structure, strategies, and risk-return profiles of private equity investments, including venture capital and buyouts.
Private Debt
Examines non-publicly traded debt instruments, their risk profiles, and their role in alternative investment portfolios.
Hedge Funds
Discusses hedge fund strategies, risk management, performance measurement, and the regulatory environment.
Digital Assets
Introduces cryptocurrencies, blockchain technology, and the rapidly evolving digital asset landscape.
Funds of Funds
Looks at multi-manager investment strategies, due diligence, and the advantages and challenges of funds of funds.
Eligibility and Registration Requirements
To register for the CAIA Level 1 exam, candidates must:
Have a bachelor’s degree or equivalent, or
Possess at least one year of professional experience in the alternative investments industry, or
Have four years of professional experience in any field.
Exam Dates and Registration Windows (2025)
CAIA Level 1 is offered twice a year, in March and September. For 2025, the key dates are:
March 2025 Exam Cycle
Registration Opens: October 14, 2024
Early Registration Deadline: December 9, 2024
Final Registration Deadline: February 3, 2025
Exam Window: March 3 – March 14, 2025
September 2025 Exam Cycle
Registration Opens: April 14, 2025
Early Registration Deadline: June 9, 2025
Final Registration Deadline: August 4, 2025
Exam Window: September 1 – September 12, 2025.
CAIA Level 1 Exam Fees (2025)
The total cost of sitting for the CAIA Level 1 exam in 2025 depends on when you register:
Fee Type | Amount (USD) | Notes |
One-Time Enrollment Fee | $400 | Non-refundable, paid once per candidate |
Early Registration Fee | $995 | Includes digital curriculum |
Standard Registration Fee | $1,395 | Includes digital curriculum |
Retake Fee | $795 | Applies if you need to retake the exam |
Total Cost Examples:
Early Registration (first-time): $1,395 ($400 enrollment + $995 exam fee)
Standard Registration (first-time): $1,795 ($400 enrollment + $1,395 exam fee)
Retake: $795.
Note: The digital curriculum is included in the exam fee. Candidates who prefer a print version can purchase it separately.
Study Commitment and Preparation
The CAIA Association recommends 250–300 hours of study for Level 1 candidates.
All exam questions are based solely on the official CAIA curriculum, which is updated annually; using the most recent curriculum is essential for exam success.
Candidates are encouraged to focus on the learning objectives and keywords in the curriculum, as these directly inform the exam questions.
Exam Day: What to Expect
Arrive early at your test center with valid identification.
Personal belongings are not allowed in the testing room; secure storage is provided.
Follow all security protocols, including check-in and check-out procedures.
You may take a 30-minute break between the two exam sections, but the clock stops only during the official break.
Scoring, Results, and Next Steps
Exam results are typically released a few weeks after the exam window closes.
Candidates receive a performance report detailing their strengths and weaknesses by topic area.
Passing Level 1 is the first step toward earning the CAIA Charter; candidates must also pass the Level 2 exam and meet the professional experience requirements to become a CAIA Charterholder.
Why Pursue the CAIA Designation?
Career Advancement: The CAIA Charter is highly regarded in asset management, private equity, hedge funds, and institutional investing.
Industry Relevance: The curriculum is updated annually to reflect the latest trends and research in alternative investments.
Global Recognition: The CAIA designation is recognized by employers and regulators worldwide.
Conclusion
The CAIA Level 1 exam is a challenging but rewarding gateway to a career in alternative investments. With its rigorous format, up-to-date curriculum, and emphasis on ethics and professional standards, the exam prepares candidates for the complexities of modern investment management. By understanding the exam structure, focusing on high-weighted topics, and committing to a disciplined study plan, candidates can position themselves for success in one of the fastest-growing areas of finance.
For the most current information and official resources, always refer to the CAIA Association’s website and the latest candidate handbook.
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