What is the role of an investment committee in alternative investments?

The role of an investment committee in alternative investments is primarily to oversee investment decisions and ensure that these decisions align with the fund's overall strategy. This oversight is critical because alternative investments often involve unique risks and opportunities that differ significantly from traditional asset classes.

The investment committee evaluates potential investments based on the fund's specific objectives, risk tolerance, and investment philosophy. This includes analyzing and approving investment strategies, assessing the appropriateness of specific investment opportunities, and ensuring that all decisions are made in the best interest of the fund and its investors.

The committee's function also includes regularly reviewing and monitoring the performance of investments to ensure adherence to the fund's strategic goals. By focusing on this alignment, the committee can help enhance overall performance while managing risk effectively, which is especially important in the complex landscape of alternative investments.

In contrast to other roles, such as marketing the fund or managing daily operations, the investment committee focuses specifically on governance and strategic oversight rather than operational tasks or investor relations. This delineation emphasizes the importance of maintaining rigorous investment standards, which can lead to better long-term outcomes for the fund.