Hedgeducation

The Taxonomy of Alternatives: Types, Drivers, Examples

A field guide to hedge funds, private equity, venture capital, private credit, real assets, and structured products.

📊
Major Categories
  • Hedge Funds: Diversifying and absolute‑return strategies across public markets.
  • Private Equity: Control and minority stakes in private companies; value creation and exits.
  • Venture Capital: Early‑stage financing targeting innovation and exponential growth.
  • Private Credit: Direct lending and specialty finance with negotiated terms.
  • Real Assets: Real estate, infrastructure, and natural resources with inflation sensitivity.
  • Structured Products: Tailored payoff profiles via securitization or derivatives.
⚖️
Comparing Risk & Liquidity

Each category has distinct cash‑flow, liquidity, and risk drivers. Blending strategies can improve overall portfolio resilience.