CFA L-3

Syllabus

2026
TABLE OF CONTENT
Summary of Changes 1

Subjects 2

Chapters 3

Learning Outcomes 5

-Aswini Bajaj
CA, CS, CFA, FRM, CAIA, CIPM, CFP, RV, CCRA, CIIB, CIRA, AIM
 Changes'26 | CFA L3

CFA L3 | Summary of Changes | 2026

New Changes Deleted

Core Material

No. of No. of Total

Summary
Chapters LOS %
Same 22 171 100%
New 0 0 0%
Changes 0 0 0%
Total 22 171 100%
Deleted 0 0 0%

Specialized Pathway

Portfolio Management
No. of No. of Total
Summary
Chapters LOS %
Same 8 64 100%
New 0 0 0%
Changes 0 0 0%
Total 8 64 100%
Deleted 0 0 0%

Private Markets

Summary No. of Chapters No. of LOS % of Total

Same 7 34 100%
New 0 0 0%
Changes 0 0 0%
Total 7 34 100%
Deleted 0 0 0%

Private Wealth

Summary No. of Chapters No. of LOS % of Total

Same 7 27 100%
New 0 0 0%
Changes 0 0 0%
Total 7 27 100%
Deleted 0 0 0%

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SYLLABUS
Subjects

Readin LOS
Subject Chapters Weightage Points
g No. Average Total
Core Material
1-5 Asset Allocation 5 10 48 15-20% 46
6-12 Portfolio Construction 7 7 51 15-20% 46
13-15 Performance Measurement 3 12 37 5-10% 19
16-18 Derivatives and Risk Management 3 8 25 10-15% 33
19-22 Ethical and Professional Standards 4 3 10 10-15% 33
Specialized Pathway
P1-P8 Portfolio Management 8 8 64
M1-M7 Private Markets 7 5 34 30-35% 86
W1-W7 Private Wealth 7 4 27
TOTAL 44 57 296 100% 264

- There are 2 sessions of 2:15 mins

- Each session has 132 points (132*2=264 Total points)
- 1 MCQ = 3 points. (44*3 = 132 points)
- Both sessions are a mix of Essay type and MCQs. Overall exams should have 44 MCQs as a part of Item Sets, and and Essay type questions
approximately 132 points
- We have taken the Weightage average for convenience

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SYLLABUS
Chapters

No. of
Subject Reading No Reading Name
LOS
Core Material
1 Capital Market Expectations, Part 1-Framework and Macro Considerations 10
2 Capital Market Expectations, Part 2-Forecasting Asset Class Returns 8
Asset Allocation 3 Overview of Asset Allocation 10
4 Principles of Asset Allocation 15
5 Asset Allocation with Real-World Constraints 5
6 Overview of Equity Portfolio Management 6
7 Overview of Fixed-Income Portfolio Management 9
8 Asset Allocation to Alternative Investments 8
Portfolio
9 An Overview of Private Wealth Management 5
Construction
10 Portfolio Management for Institutional Investors 8
11 Trading Costs and Electronic Markets 10
12 Case Study in Portfolio Management-Institutional SWF 5
13 Portfolio Performance Evaluation 16
Performance
14 Investment Manager Selection 10
Measurement
15 Overview of the Global Investment Performance Standards 11
16 Options Strategies 10
Derivatives and Risk
17 Swaps, Forwards, and Futures Strategies 6
Management
18 Currency Management-An Introduction 9
19 Code of Ethics and Standards of Professional Conduct 2
Ethical and 20 Guidance for Standards I–VII 2
Professional
Standards 21 Application of the Code and Standards-Level III 2
22 Asset Manager Code of Professional Conduct 4

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No. of
Subject Reading No Reading Name
LOS
Specialized Pathway
P-1 Index-Based Equity Strategies 6
P-2 Active Equity Investing-Strategies 9
P-3 Active Equity Investing-Portfolio Construction 8
Portfolio P-4 Liability-Driven and Index-Based Strategies 7
Management
Pathway P-5 Yield Curve Strategies 7
P-6 Fixed-Income Active Management-Credit Strategies 11
P-7 Trade Strategy and Execution 9
P-8 Case Study in Portfolio Management-Institutional 0
M-1 Private Investments and Structures 4
M-2 General Partner and Investor Perspectives and the Investment Process 5
M-3 Private Equity 5
Private Markets
M-4 Private Debt 5
Pathway
M-5 Private Special Situations 5
M-6 Private Real Estate Investments 5
M-7 Infrastructure 5
W-1 The Private Wealth Management Industry 4
W-2 Working With the Wealthy 4
W-3 Wealth Planning 4
Private Wealth
W-4 Investment Planning 4
Pathway
W-5 Preserving the Wealth 4
W-6 Advising the Wealthy 4
W-7 Transferring the Wealth 3

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SYLLABUS
Learning Outcome
Readin
Reading Name LOS Learning Outcome
g No.
Asset Allocation
discuss the role of, and a framework for, capital market expectations in the portfolio management
a
process
b discuss challenges in developing capital market forecasts
c explain how exogenous shocks may affect economic growth trends
Capital Market discuss the application of economic growth trend analysis to the formulation of capital market
d
Expectations, Part 1- expectations
1 Framework and e compare major approaches to economic forecasting
Macro f discuss how business cycles affect short- and long-term expectations
Considerations explain the relationship of inflation to the business cycle and the implications of inflation for cash,
g
bonds, equity, and real estate returns
h discuss the effects of monetary and fiscal policy on business cycles
interpret the shape of the yield curve as an economic predictor and discuss the relationship between
i
the yield curve and fiscal and monetary policy
j identify and interpret macroeconomic, interest rate, and exchange rate linkages between economies
a discuss approaches to setting expectations for fixed-income returns
discuss risks faced by investors in emerging market fixed-income securities and the country risk
b
analysis techniques used to evaluate emerging market economies
c discuss approaches to setting expectations for equity investment market returns
Capital Market
Expectations, Part 2- d discuss risks faced by investors in emerging market equity securities
2 explain how economic and competitive factors can affect expectations for real estate investment
Forecasting Asset e
Class Returns markets and sector returns
f discuss major approaches to forecasting exchange rates
g discuss methods of forecasting volatility
recommend and justify changes in the component weights of a global investment portfolio based on
h
trends and expected changes in macroeconomic factors
describe elements of effective investment governance and investment governance considerations in
a
asset allocation
b formulate an economic balance sheet for a client and interpret its implications for asset allocation
compare the investment objectives of asset-only, liability-relative, and goals-based asset allocation
c
approaches
contrast concepts of risk relevant to asset-only, liability-relative, and goals-based asset allocation
d
approaches
Overview of Asset explain how asset classes are used to represent exposures to systematic risk and discuss criteria for
3 e
Allocation asset class specification
explain the use of risk factors in asset allocation and their relation to traditional asset class–based
f
approaches
g recommend and justify an asset allocation based on an investor’s objectives and constraints
h describe the use of the global market portfolio as a baseline portfolio in asset allocation
discuss strategic implementation choices in asset allocation, including passive/active choices and
i
vehicles for implementing passive and active mandates
j discuss strategic considerations in rebalancing asset allocations
a describe and evaluate the use of mean–variance optimization in asset allocation
b recommend and justify an asset allocation using mean–variance optimization
c interpret and evaluate an asset allocation in relation to an investor’s economic balance sheet
Principles of Asset d recommend and justify an asset allocation based on the global market portfolio
4 discuss the use of Monte Carlo simulation and scenario analysis to evaluate the robustness of an asset
Allocation e
allocation
f discuss asset class liquidity considerations in asset allocation
explain absolute and relative risk budgets and their use in determining and implementing an asset
g
allocation

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Reading Name LOS Learning Outcome
g No.
describe how client needs and preferences regarding investment risks can be incorporated into asset
h
allocation
i describe the use of investment factors in constructing and analyzing an asset allocation
j describe and evaluate characteristics of liabilities that are relevant to asset allocation
Principles of Asset
4 k discuss approaches to liability-relative asset allocation
Allocation
l recommend and justify a liability-relative asset allocation
m recommend and justify an asset allocation using a goals-based approach
n describe and evaluate heuristic and other approaches to asset allocation
o discuss factors affecting rebalancing policy
discuss asset size, liquidity needs, time horizon, and regulatory or other considerations as constraints
a
on asset allocation
Asset Allocation b discuss tax considerations in asset allocation and rebalancing
5 with Real-World recommend and justify revisions to an asset allocation given change(s) in investment objectives
c
Constraints and/or constraints
d discuss the use of short-term shifts in asset allocation
e identify behavioral biases that arise in asset allocation and recommend methods to overcome them
Portfolio Construction
a describe the roles of equities in the overall portfolio
b describe how an equity manager’s investment universe can be segmented
Overview of Equity describe the types of income and costs associated with owning and managing an equity portfolio
c
6 Portfolio and their potential effects on portfolio performance
Management describe the potential benefits of shareholder engagement and the role an equity manager might
d
play in shareholder engagement
e describe rationales for equity investment across the active management spectrum
f discuss considerations in choosing a benchmark for an equity portfolio
discuss roles of fixed-income securities in portfolios and how fixed-income mandates may be
a
classified
b describe fixed-income portfolio measures of risk and return as well as correlation characteristics
describe bond market liquidity, including the differences among market sub-sectors, and discuss the
c
effect of liquidity on fixed-income portfolio management
Overview of Fixed- d describe and interpret a model for fixed-income returns
7 Income Portfolio discuss the use of leverage, alternative methods for leveraging, and risks that leverage creates in
e
Management fixed-income portfolios
f discuss differences in managing fixed-income portfolios for taxable and tax-exempt investors
g describe liability-driven investing
h describe the strategy of cash flow matching
describe construction, benefits, limitations, and risk–return characteristics of a laddered bond
i
portfolio
a explain the roles that alternative investments play in multi-asset portfolios
b compare alternative investments and bonds as risk mitigators in relation to a long equity position
compare traditional and risk-based approaches to defining the investment opportunity set, including
c
alternative investments
Asset Allocation to
discuss investment considerations that are important in allocating to different types of alternative
8 Alternative d
investments
Investments e discuss suitability considerations in allocating to alternative investments
f discuss approaches to asset allocation to alternative investments
g discuss the importance of liquidity planning in allocating to alternative investments
h discuss considerations in monitoring alternative investment programs
a discuss the different types of individual wealth and how wealth is created and distributed globally
An Overview of evaluate how changes in human capital, financial capital, and economic net worth across the
b
9 Private Wealth financial stages of an individual’s life influence their financial decision making
Management justify how returns, risks, objectives, and constraints for individuals relate to their human and financial
c
capital

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Reading Name LOS Learning Outcome
g No.
evaluate how various types of taxes imposed on individual investors and the impact of inflation
An Overview of d
influence investment decisions
9 Private Wealth
discuss the differences between private and institutional clients and formulate an appropriate
Management e
Investment Policy Statement for private clients
a discuss common characteristics of institutional investors as a group
b discuss investment policy of institutional investors
discuss the stakeholders in the portfolio, the liabilities, the investment time horizons, and the liquidity
c
needs of different types of institutional investors
describe the focus of legal, regulatory, and tax constraints affecting different types of institutional
Portfolio d
investors
Management for
10 evaluate risk considerations of private defined benefit (DB) pension plans in relation to 1) plan
Institutional
e funded status, 2) sponsor financial strength, 3) interactions between the sponsor’s business and the
Investors
fund’s investments, 4) plan design, and 5) workforce characteristics
f evaluate the investment policy statement of an institutional investor
evaluate the investment portfolio of a private DB plan, sovereign wealth fund, university endowment,
g
and private foundation
h describe considerations affecting the balance sheet management of banks and insurers
a explain the components of execution costs, including explicit and implicit costs
b calculate and interpret effective spreads and VWAP transaction cost estimates
c describe the implementation shortfall approach to transaction cost measurement
d describe factors driving the development of electronic trading systems
Trading Costs and e describe market fragmentation
11
Electronic Markets f identify and contrast the types of electronic traders
g describe characteristics and uses of electronic trading systems
h describe comparative advantages of low-latency traders
i describe the risks associated with electronic trading and how regulators mitigate them
j describe abusive trading practices that real-time surveillance of markets may detect
a discuss financial risks associated with the portfolio strategy of an institutional investor
b discuss environmental and social risks associated with the portfolio strategy of an institutional investor
Case Study in analyze and evaluate the financial and non-financial risk exposures in the portfolio strategy of an
c
Portfolio institutional investor
12
Management- discuss various methods to manage the risks that arise on long-term direct investments of an
d
Institutional SWF institutional investor
evaluate strengths and weaknesses of an enterprise risk management system and recommend
e
improvements
Performance Measurement
explain the following components of portfolio evaluation and their interrelationships: performance
a
measurement, performance attribution, and performance appraisal
b describe attributes of an effective attribution process
c contrast return attribution and risk attribution; contrast macro and micro return attribution
describe returns-based, holdings-based, and transactions-based performance attribution, including
d
advantages and disadvantages of each
e interpret the sources of portfolio returns using a specified attribution approach
f interpret the output from fixed-income attribution analyses
Portfolio g discuss considerations in selecting a risk attribution approach
13 Performance identify and interpret investment results attributable to the asset owner versus those attributable to
Evaluation h
the investment manager
i discuss uses of liability-based benchmarks
j describe types of asset-based benchmarks
k discuss tests of benchmark quality
l describe the impact of benchmark misspecification on attribution and appraisal analysis
m describe problems that arise in benchmarking alternative investments
calculate and interpret the Sortino ratio, the appraisal ratio, upside/downside capture ratios,
n
maximum drawdown, and drawdown duration
o describe limitations of appraisal measures and related metrics
p evaluate the skill of an investment manager

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Reading Name LOS Learning Outcome
g No.
a describe the components of a manager selection process, including due diligence
b contrast Type I and Type II errors in manager hiring and continuation decisions
c describe uses of returns-based and holdings-based style analysis in investment manager selection
describe uses of the upside capture ratio, downside capture ratio, maximum drawdown, drawdown
d
duration, and up/down capture in evaluating managers
e evaluate a manager’s investment philosophy and investment decision-making process
Investment
14 discuss how behavioral factors affect investment team decision making, and recommend techniques
Manager Selection f
for mitigating their effects
g evaluate the costs and benefits of pooled investment vehicles and separate accounts
compare types of investment manager contracts, including their major provisions and advantages
h
and disadvantages
i describe the three basic forms of performance-based fees
j analyze and interpret a sample performance-based fee schedule
discuss the objectives and scope of the GIPS standards and their benefits to prospective clients and
a
investors, as well as investment managers
explain the fundamentals of compliance with the GIPS standards, including the definition of the firm
b
and the firm’s definition of discretion
discuss requirements of the GIPS standards with respect to return calculation methodologies, including
c
the treatment of external cash flows, cash and cash equivalents, and expenses and fees
d explain the recommended valuation hierarchy of the GIPS standards
explain requirements of the GIPS standards with respect to composite return calculations, including
e
Overview of the methods for asset-weighting portfolio returns
Global Investment explain the meaning of “discretionary” in the context of composite construction and, given a
15
Performance f description of the relevant facts, determine whether a portfolio is likely to be considered
Standards discretionary
g explain the role of investment mandates, objectives, or strategies in the construction of composites
explain requirements of the GIPS standards with respect to composite construction, including
h switching portfolios among composites, the timing of the inclusion of new portfolios in composites, and
the timing of the exclusion of terminated portfolios from composites
i explain requirements of the GIPS standards with respect to presentation and reporting
explain the conditions under which the performance of a past firm or affiliation may be linked to or
j
used to represent the historical performance of a new or acquiring firm
k discuss the purpose, scope, and process of verification
Derivatives and Risk Management
a demonstrate how an asset’s returns may be replicated by using options
discuss the investment objective(s), structure, payoff, risk(s), value at expiration, profit, maximum
b
profit, maximum loss, and breakeven underlying price at expiration of a covered call position
discuss the investment objective(s), structure, payoff, risk(s), value at expiration, profit, maximum
c
profit, maximum loss, and breakeven underlying price at expiration of a protective put position
compare the delta of covered call and protective put positions with the position of being long an
d
asset and short a forward on the underlying asset
16 Options Strategies compare the effect of buying a call on a short underlying position with the effect of selling a put on
e
a short underlying position
discuss the investment objective(s), structure, payoffs, risk(s), value at expiration, profit, maximum
f
profit, maximum loss, and breakeven underlying price at expiration of the following option
g describe uses of calendar spreads
h discuss volatility skew and smile
i identify and evaluate appropriate option strategies consistent with given investment objectives
j demonstrate the use of options to achieve targeted equity risk exposures
demonstrate how interest rate swaps, forwards, and futures can be used to modify a portfolio’s risk
a
and return
Swaps, Forwards, demonstrate how currency swaps, forwards, and futures can be used to modify a portfolio’s risk and
b
17 and Futures return
Strategies demonstrate how equity swaps, forwards, and futures can be used to modify a portfolio’s risk and
c
return
d demonstrate the use of volatility derivatives and variance swaps

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Reading Name LOS Learning Outcome
g No.
Swaps, Forwards, e demonstrate the use of derivatives to achieve targeted equity and interest rate risk exposures
17 and Futures demonstrate the use of derivatives in asset allocation, rebalancing, and inferring market
f
Strategies expectations
a analyze the effects of currency movements on portfolio risk and return
b discuss strategic choices in currency management
formulate an appropriate currency management program given financial market conditions and
c
portfolio objectives and constraints
compare active currency trading strategies based on economic fundamentals, technical analysis,
d
Currency carry-trade, and volatility trading
18 Management-An e describe how changes in factors underlying active trading strategies affect tactical trading decisions
Introduction f describe how forward contracts and FX (foreign exchange) swaps are used to adjust hedge ratios
describe trading strategies used to reduce hedging costs and modify the risk–return characteristics
g
of a foreign-currency portfolio
describe the use of cross-hedges, macro-hedges, and minimum-variance-hedge ratios in portfolios
h
exposed to multiple foreign currencies
i discuss challenges for managing emerging market currency exposures
Ethical and Professional Standards
describe the structure of the CFA Institute Professional Conduct Program and the disciplinary review
Code of Ethics and
a process for the enforcement of the CFA Institute Code of Ethics and Standards of Professional
Standards of
19 Conduct
Professional
explain the ethical responsibilities required by the Code and Standards, including the sub-sections of
Conduct b
each standard
demonstrate a thorough knowledge of the CFA Institute Code of Ethics and Standards of
Guidance for a Professional Conduct by interpreting the Code and Standards in various situations involving issues of
20
Standards I–VII professional integrity
b recommend practices and procedures designed to prevent violations of the Code and Standards
evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of
Application of the a
Professional Conduct
21 Code and
explain how the practices, policies, or conduct does or does not violate the CFA Institute Code of
Standards-Level III b
Ethics and Standards of Professional Conduct
explain the purpose of the Asset Manager Code and the benefits that may accrue to a firm that
a
adopts the Code
Asset Manager
explain the ethical and professional responsibilities required by the six General Principles of
Code of b
22 Conduct of the Asset Manager Code
Professional
determine whether an asset manager’s practices and procedures are consistent with the Asset
Conduct c
Manager Code
d recommend practices and procedures designed to prevent violations of the Asset Manager Code

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Reading Name LOS Learning Outcome
g No.
Portfolio Management Pathway
a compare factor-based strategies to market-capitalization-weighted indexing
b compare different approaches to index-based equity strategies
c compare different approaches to index-based equity investing
Index-Based Equity compare the full replication, stratified sampling, and optimization approaches for the construction of
P-1 d
Strategies index-based equity portfolios
discuss potential causes of tracking error and methods to control tracking error for index-based
e
equity portfolios
f explain sources of return and risk to an index-based equity portfolio
a compare fundamental and quantitative approaches to active management
b analyze bottom-up active strategies, including their rationale and associated processes
c analyze top-down active strategies, including their rationale and associated processes
d analyze factor-based active strategies, including their rationale and associated processes
Active Equity
P-2 e analyze activist strategies, including their rationale and associated processes
Investing-Strategies
f describe active strategies based on statistical arbitrage and market microstructure
g describe how fundamental active investment strategies are created
h describe how quantitative active investment strategies are created
i discuss equity investment style classifications
describe elements of a manager’s investment philosophy that influence the portfolio construction
a
process
b discuss approaches for constructing actively managed equity portfolios
distinguish between Active Share and active risk and discuss how each measure relates to a
c
manager’s investment strategy
Active Equity d discuss the application of risk budgeting concepts in portfolio construction
P-3 Investing-Portfolio discuss risk measures that are incorporated in equity portfolio construction and describe how limits set
e
Construction on these measures affect portfolio construction
discuss how assets under management, position size, market liquidity, and portfolio turnover affect
f
equity portfolio construction decisions
g evaluate the efficiency of a portfolio structure given its investment mandate
discuss the long-only, long extension, long/short, and equitized market-neutral approaches to equity
h
portfolio construction, including their risks, costs, and effects on potential alphas
a evaluate strategies for managing a single liability
compare strategies for a single liability and for multiple liabilities, including alternative means of
b
implementation
evaluate liability-based strategies under various interest rate scenarios and select a strategy to
Liability-Driven and c
achieve a portfolio’s objectives
P-4 Index-Based
d explain risks associated with managing a portfolio against a liability structure
Strategies
discuss bond indexes and the challenges of managing a fixed-income portfolio to mimic the
e
characteristics of a bond index
f compare alternative methods for establishing bond market exposure passively
g discuss criteria for selecting a benchmark and justify the selection of a benchmark
a describe the factors affecting fixed-income portfolio returns due to a change in benchmark yields
formulate a portfolio positioning strategy given forward interest rates and an interest rate view that
b
coincides with the market view
formulate a portfolio positioning strategy given forward interest rates and an interest rate view that
Yield Curve c
P-5 diverges from the market view in terms of rate level, slope, and shape
Strategies
d formulate a portfolio positioning strategy based upon expected changes in interest rate volatility
e evaluate a portfolio’s sensitivity using key rate durations of the portfolio and its benchmark
f discuss yield curve strategies across currencies
g evaluate the expected return and risks of a yield curve strategy
a describe risk considerations for spread-based fixed-income portfolios
Fixed-Income Active discuss the advantages and disadvantages of credit spread measures for spread-based fixed-
P-6 Management- b income portfolios, and explain why option-adjusted spread is considered the most appropriate
Credit Strategies measure
c discuss bottom-up approaches to credit strategies

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Reading Name LOS Learning Outcome
g No.
d discuss top-down approaches to credit strategies
e discuss liquidity risk in credit markets and how liquidity risk can be managed in a credit portfolio
f describe how to assess and manage tail risk in credit portfolios
g discuss the use of credit default swap strategies in active fixed-income portfolio management
Fixed-Income Active discuss various portfolio positioning strategies that managers can use to implement a specific credit
h
P-6 Management- spread view
Credit Strategies i discuss considerations in constructing and managing portfolios across international credit markets
describe the use of structured financial instruments as an alternative to corporate bonds in credit
j
portfolios
describe key inputs, outputs, and considerations in using analytical tools to manage fixed-income
k
portfolios
a discuss motivations to trade and how they relate to trading strategy
b discuss inputs to the selection of a trading strategy
c compare benchmarks for trade execution
d recommend and justify a trading strategy (given relevant facts)
e describe factors that typically determine the selection of a trading algorithm class
Trade Strategy and
P-7 contrast key characteristics of the following markets in relation to trade implementation: equity, fixed
Execution f
income, options and futures, OTC derivatives, and spot currency
g explain how trade costs are measured and determine the cost of a trade
h evaluate the execution of a trade
evaluate a firm’s trading procedures, including processes, disclosures, and record keeping with
i
respect to good governance
a discuss tools for managing portfolio liquidity risk
b discuss capture of the illiquidity premium as a long-term investment strategy
analyze asset allocation and portfolio construction in relation to liquidity needs and risk and return
c
Case Study in requirements and recommend actions to address identified needs
Portfolio demonstrate the application of the Code of Ethics and Standards of Professional Conduct regarding
P-8 d
Management- the actions of individuals involved in manager selection
Institutional analyze the costs and benefits of derivatives versus cash market techniques for establishing or
e
modifying asset class or risk exposures
f demonstrate the use of derivatives overlays in tactical asset allocation and rebalancing
g discuss ESG considerations in managing long-term institutional portfolios

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Reading Name LOS Learning Outcome
g No.
Private Markets Pathway
contrast the features of private and public investments, and discuss characteristics of private and
a
public markets
b discuss private investment methods and structures and their uses
Private Investments discuss the difference between public and private market performance, and calculate, interpret, and
M-1
and Structures c discuss the use of performance metrics including distributed to paid-in, residual value to paid-in, and
total value to paid-in
compare the risk and return of investing in private markets and public markets as part of a strategic
d
asset allocation
a discuss a general partner’s roles and responsibilities in managing private investment funds
discuss how private investment firms align their interests with those of their investors, and calculate,
General Partner b interpret, and discuss private market fund performance from an investor perspective, including
and Investor management fees and carried interest
M-2 Perspectives and discuss favorable characteristics of private investment targets and sources of value creation in
c
the Investment private markets
Process discuss the role of conducting due diligence and establishing a business plan in the private investment
d
process
e discuss alternative exit routes in private investments and their impact on value
a discuss private equity strategies over the company life cycle
b discuss characteristics of venture capital and growth equity investments
c discuss characteristics of buyout equity investments
M-3 Private Equity estimate and interpret key inputs and calculate the value of a private equity investment for venture
d
capital, growth equity, and buyout situations
discuss the risk and return among private equity investments as well as versus other investments as
e
part of a strategic asset allocation
a discuss the use of debt financing in private market strategies over the investment life cycle
discuss the use of leveraged loans, high-yield bonds, and convertible bonds in private market
b
strategies
c contrast the use of mezzanine debt and unitranche debt in private market strategies;
M-4 Private Debt
analyze private debt profiles and calculate and interpret financial ratios used to value private debt
d
investments
discuss the risk and return among private debt investments as well as versus other private market
e
investments as part of a strategic asset allocation
a discuss the characteristics and risks of special investment situations
discuss the features of distressed debt, financing alternatives for issuers in financial distress, and
b
investment strategies in distressed situations
Private Special
M-5 c discuss the features of complex investment situations involving financial dislocation or stress
Situations
d discuss the due diligence and valuation processes used to evaluate special investment situations
discuss the risk and return among special situations and compared to other forms of private debt as
e
part of a strategic asset allocation
a discuss important private real estate investment features
b discuss economic value drivers of private real estate investments and their role in a portfolio
Private Real Estate c discuss the due diligence and valuation processes for private real estate
M-6
Investments d discuss the distinctive investment characteristics of timberland and farmland
discuss the risk and return among private real estate investments and as compared to other
e
investments as part of a strategic asset allocation
a discuss important infrastructure investment features
b discuss infrastructure investment methods and investment vehicles and their uses
discuss the infrastructure investment process over the project life cycle and the roles of infrastructure
c
M-7 Infrastructure debt and equity financing
d discuss the due diligence and valuation processes for infrastructure investments
discuss the risk and return among infrastructure investments and as compared to other investments as
e
part of a strategic asset allocation

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Reading Name LOS Learning Outcome
g No.
Private Wealth Pathway
discuss the typical business models of private wealth management service providers and their
a
segment-based strategies
discuss typical fee, revenue, and compensation structures prevalent in the private wealth
The Private Wealth b
W-1 Management management industry
discuss how various advisers, consultants, and professionals support private wealth managers and
Industry c
their clients
describe and evaluate regulatory and compliance considerations influencing the private wealth
d
management industry
a describe how family and human dynamics relate to wealth and its management
describe skills needed in profiling, acquiring, advising, communicating with, and educating private
b
clients
Working With the
W-2 describe the unique characteristics of ultra-high-net-worth individuals and how these characteristics
Wealthy c
distinguish them from other private wealth management clients
recommend appropriate approaches to the development, implementation, adherence, and
d
amendment of a common, long-term framework for joint family decision making
formulate goals-based financial plans and recommend appropriate strategies to achieve an
a
individual’s goals-based financial plans
recommend and justify methods to manage a family’s financial exposures holistically across their
b
W-3 Wealth Planning lifetime and retirement
evaluate how the principles of taxation and taxes influence goals-based planning and holistic
c
financial plans for individual investors
d recommend appropriate liquidity strategies for goal-based planning and holistic financial plans
a recommend and justify portfolio allocations and investments for a private client
discuss the tax efficiency of investment across various asset types and recommend various tax
b
management strategies for asset allocation
W-4 Investment Planning discuss and recommend appropriate wealth management planning approaches for retirement from
c
legal, taxation, and jurisdictional perspectives
evaluate the success of an investment program for a private client based on portfolio reporting and
d
review
a analyze the types of risks relevant to human capital
b describe and recommend strategies to manage risks to human capital
Preserving the recommend planning and investment strategies to mitigate the corrosive influence of inflation on
W-5 c
Wealth preserving purchasing power
describe how exchange rates influence asset allocation and planning as well as approaches to
d
mitigate the exchange rate risk
discuss and recommend appropriate citizenship, nationality, and legal residency approaches for
a
private clients
discuss and recommend appropriate private wealth management approaches that maximize the
b
Advising the human capital, financial capital, and economic net worth of complex family situations
W-6
Wealthy discuss and recommend appropriate private wealth management approaches that maximize the
c
human capital, financial capital, and economic net worth of entrepreneurs and business owners
discuss and recommend appropriate private wealth management approaches that maximize the
d
human capital, financial capital, and economic net worth of professionals, executives, and others
discuss and recommend appropriate wealth management planning approaches for transferring
a
wealth during the lifetime of the giver through gifts
Transferring the discuss and recommend appropriate wealth management planning approaches for transferring
W-7 b
Wealth wealth at death through bequests and inheritance
discuss and recommend appropriate wealth management planning approaches for the preservation
c
of wealth across multiple generations through charitable giving and philanthropy

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