Glossary

Explore key terms in alternatives investing

A

• Absolute vs. risk-adjusted performance
• Accredited investor
• Alternative assets
• Alternative investment funds
• Assets Under Custody (AUC)
• Disqualified person

B

• Backdoor Roth IRA
• Bitcoin ETFs
• Black swan event
• Blockchain
• Bull vs. bear market

C

• Capital call
• Capital gains tax
• Carry or carried interest
• Cash flow
• Centralized finance (CeFi)
• Certified financial advisor
• Cold storage
• Correlation
• Crypto IRA
• Crypto keys
• Crypto market volatility
• Crypto taxes
• Crypto wallet
• Custodian

D

• DAOs
• Decentralized finance (DeFi)
• Disqualified person
• Distributed to paid-in-capital
• Dollar-cost averaging

E

• ESG investing

F

• Family office
• Feeder fund
• Fixed-income asset
• Fund of funds

G

• General Partner

H

• Hedge fund
• Hedging
• High-net-worth individual

I

• Illiquidity premium
• Inflation
• Initial Public Offering (IPO)
• Internal rate of return
• Investment Alpha
• IRA

J

• J curve
• Joint Roth IRA

L

• Limited Partner
• Liquidity
• Lock-up period

M

• Middle market
• Modern portfolio theory
• Multiple on Invested Capital (MOIC)

N

• Net asset value
• Net worth

P

• Portfolio diversification
• Portfolio drift
• Portfolio rebalancing
• Pre-IPO
• Primary Market
• Private credit
• Private equity
• Private equity vs. venture capital
• Private market alternatives
• Private markets vs. public markets
• Private placement memorandum
• Prohibited transaction
• Prospectus

R

• Real assets
• REIT (Real Estate Investment Trust)
• Risk tolerance
• Risk-adjusted returns
• RMD (Required Minimum Distributions)

S

• SDIRA
• Secondary market
• Securities and exchange commission
• Self-directed IRA custodian
• Self-directed Roth IRA
• SEP IRA
• Sharpe ratio
• Special Purpose Vehicle (SPV)
• Stablecoins
• Stock market volatility

T

• Tokenization
• Traditional vs. Roth IRAs

V

• Venture capital

W

• Wealth Manager

Y

• Yield