New MBA major to meet finance industry demand

Future online MBA applicants to Florida State University can pursue a newly created Major in Alternative Investments and Finance. Aimed at providing a pivotal financial skill set already in high demand, the new major leverages FSU’s nationally ranked programs in finance, real estate, and risk management and insurance.

Today’s investors are reducing their reliance on traditional investments of stocks, bonds and cash, choosing to diversify their portfolios with more alternative investments. Experts say the type of alternative investment and reason varies by investor:

• Perhaps they are drawn to income that could be made by investing in real estate
• Maybe they seek intrinsic, possibly financial, rewards available to angel investors supporting a startup venture
• Likely they have chosen to adopt strategies, such as hedge funds or cryptocurrencies, which may generate higher gains but can also come with higher risk
• Or recently, it could be they have decided to seek more stability and less volatility as they watch the widely fluctuating stock market

Regardless of the reason, the alternative investment sector is experiencing exponential growth, rising from 6% of the global investible markets two decades ago to an estimated 24% today, according to the Chartered Alternative Investment Analyst Association (CAIA). The escalating numbers drive home that this is no longer the financial industry everyone’s parents once knew, and the FSU College of Business stands ready to equip the next generation of fund managers for the ongoing industry shift.

“With assets projected to surpass $29 trillion by 2030, alternative investments can no longer be considered a niche market,” said Kelsey Syvrud, assistant chair of FSU’s Department of Finance and director of the Gene Taylor/Bank of America Banking and Financial Studies Center. “Investors are expanding allocations beyond traditional markets, increasing allocations to asset classes including private credit, private equity, and real assets, particularly with the rise of both private-public partnerships and semi-liquid, thus more easily accessible, vehicle structures.”

This expansion results in more job opportunities for business graduates who understand both alternative investments and risk-based decision making, she said.

“As demand for specialized expertise accelerates, professionals with knowledge in alternative asset strategies will be positioned for high-impact roles in the industry,” Syvrud said.

Kathleen McCullough, senior associate dean for academic affairs and Kathryn Magee Kip Professor of Risk Management and Insurance, said the new major’s curriculum dovetails with the graduate studies already offered by the college, benefiting from the combined faculty expertise. Those studies include the online MBA real estate specialty and the online master’s degree in risk management and insurance, both of which secured Top 10 placements this year among public schools in rankings by U.S. News & World Report.

The new, fully online Master of Business Administration (MBA) major also meets an urgent need nationwide, McCullough said. Most finance studies in MBA programs focus on traditional asset management, corporate finance and public markets. To thrive in today’s investment industry, graduates will need more studies in alternative investment assets, such as private equity; hedge funds; private debt; real estate; infrastructure; natural resources and commodities; digital assets, including cryptocurrencies; and insurance-linked securities.

“While this is a rapidly growing market, there is a lack of specialized graduates in alternative investments in Florida, and in the nation as a whole,” McCullough said. “Most existing programs are general business programs that offer some electives in alternative investments. Our new major provides students a core curriculum focused on alternative investments while they still master the fundamental critical-thinking and management skills expected of MBA graduates.”

Darren Brooks, MBA program coordinator and assistant chair of FSU’s Department of Management, said those earning the new major will be “equipped with the professional expertise to navigate the evolving financial landscape.” The new major’s curriculum offers students yet another path toward tailoring MBA studies to their career interests and chosen industries, he said.

Faculty members involved in launching the new MBA Major in Alternative Investments and Finance said ideal candidates include the following:

• Professionals across finance, business or related industries who want to build specialized knowledge in private markets and alternative asset strategies
• Individuals with experience in finance, real estate or risk management and insurance looking to strengthen their investment and portfolio management skills 
• Mid-career professionals or career pivoters seeking advanced training in high-growth areas such as private equity, alternative financing strategies and real estate finance
• Aspiring leaders in investment management, family offices or institutional roles who want a well-rounded business education with a focus on alternatives
• Graduate applicants seeking a broader, more strategic alternative to a traditional master’s in finance

June 1 is the deadline for those applying for fall entry into the Online MBA format with a Major in Alternative Investments and Finance. All online and part-time MBA formats also are already accepting applications until October 1 for spring entry. All the college’s master’s degree programs are GMAT optional.

Learn more and request information at mba.fsu.edu.

– Melanie Yeager