CAIA bring credentialing and professionalism to over 100 countries around the world. 13,000 members globally and about 6,000 people sit for the exam annually.
The CAIA Charter, a cornerstone of the alternative investment world, has extended its influence to over 100 countries worldwide. This self-paced program involves two biannual exams, successful completion of which grants candidates the CAIA Charter and membership eligibility. With a robust global membership surpassing 13,000 professionals, the program sees an annual influx of approximately 6,000 individuals who step up to the challenge of its rigorous examination. Operating on a membership-based model, the CAIA Association brings together CAIA members worldwide and is a renowned institution that caters to professionals in the field of alternative investments.
We have recently interviewed, William J. Kelly, the Chief Executive Officer of the CAIA Association, and Laura Merlini, Managing Director of CAIA EMEA to better understand the mission.
“We extend our reach, ushering in credentialing and professionalism across more than 100 countries worldwide. Globally, we boast a membership exceeding 13,000 dedicated professionals, with an annual cohort of around 6,000 individuals who undertake our rigorous examination. Today, we are filled with delight as we gather here in the United Arab Emirates. This momentous occasion marks the launch of our 34th global chapter, and the significance of this region cannot be overstated.
Could you shed light on the reasons behind your presence here today, the purpose of inaugurating this new chapter, and why this specific date holds special significance?
Laura said “the EMEA region is experiencing impressive growth as one of the fastest-expanding areas for CAIA. Out of our global community of 13,000 members, a significant 35% are based in this region. The Middle East in particular emerges as one of the most rapidly advancing area, primarily attributed to its status as the hub for the world’s most sophisticated sovereign wealth funds. It is here that we find a wealth of industry professionals, who commit their careers to relentless enhancement of their talents, skills, and capacities within the financial sector. The Middle East plays a pivotal role in our global landscape, with approximately 40% of the world’s sovereign wealth funds nestled in this region. Hence, it assumes an indispensable position in our global perspective. When we contemplate our overarching mission, the primacy of a client-centric ethos becomes abundantly clear. It is of paramount importance, especially considering our presence in over 100 countries. We cannot afford to have a myriad of interpretations regarding fiduciary responsibility across these diverse regions”.
As reinforced by William “this fundamental principle looms large in CAIA Association’s strategic vision for the future and underscores the imperative of prioritizing the client’s best interests. In the two-decade span of CAIA’s existence, the landscape of capital markets has undergone profound transformation. What were once considered traditional alternatives have now assumed a prominent position, moving from the fringes of asset allocation to the forefront. Hedge funds, commodities, and private markets, previously relegated to the outskirts, have now become integral components of institutional capital pools and wealth management strategies. For CAIA, a professional body committed to its mission, delving deep into these evolving asset classes is imperative. Another vital aspect pertains to ethics and professionalism in a swiftly evolving industry. The pace of change is staggering, necessitating an interdisciplinary approach. Professionals need to possess extensive knowledge and a profound understanding of the dynamics governing portfolio construction, thematic investing, ESG considerations, and the influence of artificial intelligence. “
“The industry’s rapid transformation underscores the necessity for professionals to embrace lifelong learning”, as elucidated by Laura.
What is our strategy on the ground here in the Middle East?
“We come prepared with a well-defined playbook, orchestrating more than 300 events globally through our 34 chapters. Our objective is to infuse transparency, stimulate critical conversations, and foster networking, all of which serve to unravel the complexities of this industry and propel professionalism to the forefront. It’s not merely about what we can contribute to the Middle East, but also about what the Middle East can offer us. During our recent visit to Riyadh, we witnessed the remarkable endeavours underway in bolstering the local economy and infrastructure investment. The push to nurture entrepreneurs in the country, often driven not by choice but mandate due to significant government employment, is creating an array of new industries and potential unicorns. We observed firsthand the innovative initiatives emanating from universities and academies, both in Riyadh and more recently in Abu Dhabi and Dubai. In this ever-evolving landscape, the imperative of training individuals has never held more significance”, as underscored by William.
“Certainly, in resonance with your remarks, we’ve launched our 34th global chapter, aptly named the ‘Middle East Chapter.’ Our primary objective revolves around a focused commitment to the GCC countries. We aim to stand by them, providing a dynamic platform for our members to voice their aspirations concerning educational opportunities, networking, career progression, and the overall journey of professional growth. In our journey, we’ve been fortunate to form a steadfast partnership with the Abu Dhabi Global Market from the chapter’s inception, and their invaluable support is propelling our developmental initiatives. Looking ahead, we remain open to the prospect of expanding into other nations. Saudi Arabia, known for its rapid expansion, is a prominent candidate for our future endeavours. In addition, we observe the steady influx of candidates from Kuwait, Bahrain, and other nations, making significant contributions in each examination cycle, as articulated by Laura.”
Can you explain the reasoning behind selecting the Middle East as the inaugural host for the ALTS ME conference, and what are your future plans for this event in the region?
Indeed, it’s a compelling case in point. This model was initiated in Los Angeles, California, approximately a decade ago, and since then, it has traversed the West Coast, extended its influence across various parts of the United States, ventured into Australia, Hong Kong, Singapore, and the United Kingdom, with the Middle East being the latest stop in Dubai this week. Looking forward, we have plans to take this model to Riyadh next year. The significance of this region cannot be overstated, as was highlighted at the outset of this interview. With 40% of the world’s sovereign wealth funds based here, it’s a testament to the remarkable sophistication of this market. We continuously absorb knowledge and insights, fostering an interchange between this dynamic market and the broader global community. As we chart the course for the coming months and years, our unwavering commitment remains. We aim to build upon the foundation laid by CAIA Association in its 21 years of existence, delivering enriched content, nurturing professionalism, and promoting dialogue and discussion, all aimed at generating superior outcomes for the end investor. It’s akin to painting a bridge; once you reach the other side, you must go back over and continue the journey. I’ve often remarked, and this notion has resurfaced this week, Laura, that I’ve been a part of this industry for nearly four and a half decades. In the first three decades, you could have taken a nap for a couple of years and not missed much. However, the landscape has transformed drastically. Today, even missing two or three weeks means falling behind. Concepts like tokenization, the digital economy, and the shift from traditional finance to DeFi are evolving at a rapid pace, as evidenced by discussions at Hub 71 at our event in Abu Dhabi. The pace of change is relentless.
“Absolutely, and there’s another crucial consideration to bear in mind: what was once perceived as a local market in the Middle East a few decades ago has now evolved into a global arena. The sophistication of institutional and private asset pools transcends regional borders. CAIA, as a global platform, serves as a vital connector to the worldwide community, bringing substantial value to the Middle East. In conclusion, active involvement is encouraged, and CAIA strives to be present in every corner of the globe, despite being a modest team of just 50 individuals. Our true ambassadors are our 13,000 dedicated members, and we consider it a great honour to have them represent us on the global stage, particularly here in the Middle East” added Laura.
One may wonder, why Dubai, Abu Dhabi, Saudi Arabia, or any other part of the world?
The answer lies in the reality of a global community where investors, holding a pool of assets, can allocate them anywhere across the world with confidence, unburdened by concerns about regulations or taxation, particularly for tax-exempt organizations. We are committed to unlocking opportunities for every investor. Take, for instance, the private markets where efficiency has become pronounced in the North American buyout space. Efficient markets tend to resemble beta, not alpha. For those seeking outsized returns, a measure of country or sector risk might be necessary. As we’ve witnessed this week in places like Riyadh, Abu Dhabi, and Dubai, the potential for such opportunities is immense. However, diligent research and homework are indispensable. In the quest for alpha, pockets of efficiency can be the adversary” pointed out William.
“We find ourselves immersed in an incredibly busy week, with the calendar only reaching Wednesday, yet already filled with a whirlwind of events. This evening, at the prestigious Shangri-La Hotel, we’re hosting an event for our local community, with an anticipated private gathering of about 100 individuals, converging to partake in a night of insightful discussions and fine dining. The momentum doesn’t wane, as the event brought together a diverse assembly of several hundred participants from across the Middle East. What draws them to these gatherings? Networking and enlightenment. We ardently encouraged all who graced our doorstep not to merely attend but to immerse themselves in the discussions, engage with their peers, react to the evolving landscape, and depart with valuable insights that can drive better outcomes for the end investor. It’s particularly fascinating to witness the evolving landscape on the ground, with a discernible shift away from traditional markets and conventional avenues of capital formation. Instead, the focus is shifting towards private markets, which are emerging as the epicenter of value creation and diversification. This is a profound trend we’ve been privileged to observe, underscoring the transformation of the investment landscape in this region”, as Laura has rightly noted and she added: “It’s imperative to acknowledge the substantial workforce of over 8,000 individuals employed in sovereign wealth funds. These highly adept professionals require a deep understanding of alternative investment asset classes. Therefore, we have a responsibility to create a robust platform for networking and knowledge dissemination. In this context, I’d like to highlight that we’ll be wrapping up this expansive endeavour with a significant conference called ‘ALTS Middle East.’
What is the long-term vision for the ALTS Middle East Conference, and how does it fit into CAIA’s broader efforts to bring transparency, networking, and critical conversations to the industry?
Regarding the conference, it will indeed be an annual event held here in Dubai. Alt Middle East is an extension of our broader mandate, which is now epitomized by a dozen conferences we organize worldwide. The inaugural event for the Middle East is set to take place here on the ground in partnership with the Markets Group, with an expected attendance of around 300 delegates. We chose to launch the first edition here because Dubai, as you’re aware, is the epicenter of the Middle East and an international hub. So, it served as the ideal location for our debut. The subsequent edition is slated for Riyadh next year, and we aim to rotate through and encompass all the GCC countries. Our primary focus is on establishing recognition. Dubai provided the perfect platform for our inaugural edition.
What key takeaways would you offer to individuals looking to succeed in the world of alternative investments?
It’s vital to reiterate that in the Middle East and beyond, our primary focus is unwaveringly centered on delivering better outcomes for the client. The CAIA Association is dedicated to enhancing the impact of capital allocation on both investment performance and broader societal welfare. We achieve this by providing professional education, promoting transparency, and offering thought leadership across the entire spectrum of investment alternatives within our industry. There’s no room for second-guessing. We had the privilege of addressing a group of students at the American University of Emirates last evening, and the most valuable investment advice I could offer, and indeed, did offer, was to embrace diversification and maintain a long-term perspective. Following this advice is far more likely to yield superior investment outcomes than attempting to time the market or chase the next big idea. Diversify your portfolio and invest for the long term, concluded William.
Education is also of paramount importance. It’s not about selling products or solutions; it’s about engaging in meaningful conversations, understanding real needs, and providing guidance, information, and education,” Laura emphasized.
