New Master of Business Administration major to meet finance industry demand

Future online Master of Business Administration (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…