How can I evaluate if an alternative fund is suitable for me?

You can consider whether an alternative fund is suitable for you from a few perspectives:

1. Understanding the strategy and assets. What does the fund do, concretely? Real estate (what type? residential, logistics, offices?), private equity (which sector, what size of companies?), loans (what type of debtors, what guarantees?). How does it make money? Rents, coupons, interest, capital appreciation, fees, restructurings?
2. Manager's analysis. Experience: how many years has he/she been active, how many funds has he/she managed, what documented results does he/she have? Alignment of interests: does the manager invest his/her own money in the fund? Are there clawback clauses on performance fees? Supervisory authorities (ASF in Romania) look at these aspects in the authorization and supervision process, but the final responsibility to assess the quality of the manager remains with the investor.
3. Liquidity, time horizon and personal profile. How long are the funds locked? Is there a lock-up period, redemption windows, possible secondary market? Does it fit with your personal plans? If you cannot leave the capital locked for 5–10 years, the percentage invested in that alternative investment fund should be small or you should look for another product.
4. Cost structure and net yield scenarios. Read the commissions: administration, performance, additional costs. Make a gross yield scenario (optimistic, realistic, pessimistic) and subtract the commissions to see what remains net.
5. Compatibility with risk tolerance and the rest of the portfolio. What percentage of your total wealth would this investment represent? If this fund were to perform very poorly or tie up the money longer than you expect, would it significantly affect your financial situation?