Bariono Wealth Advisors Ltd
Alternative Investment Funds
The Cyprus funds industry includes a total of approximately five billion Euros assets under management and has grown significantly since the introduction of the AIF law of 2014.
An Alternative Investment Fund in Cyprus can take any of the following legal forms:
- Fixed or Variable Capital Investment Company
- Limited Partnership (with or without a separate legal personality)
- Mutual Fund (not applicable for AIF-LNP or RAIF)
The Cyprus regulatory framework provides two types of Alternative Investment Funds (AIFs):
- Those with a limited number of persons
- Those with an unlimited number of persons
AIFs with a limited number of persons
Alternative Investment Funds with a limited number of persons may exist either as an investment company (with either fixed or variable capital) or a limited partnership. Such funds are not subject to minimum share capital requirements. Such funds can be self-managed, or they can appoint a fund manager. They can invest in any assets and they may only be marketed to ‘professional’ and ‘well-informed’ investors. The maximum number of investors is limited to 50 for private companies and to 75 for public companies. AIFs require the appointment of an auditor, a Custodian, and a Fund Administrator.
AIFs with an unlimited number of persons
Alternative Investments Funds with an unlimited number of persons may be set up as common funds, investment companies (with either fixed or variable capital) or limited partnerships. The minimum capital requirement is €125,000, which rises to €300,000 for self-managed funds. As above, such funds can be self-managed by their Board of Directors, or they can appoint a fund manager. They can be marketed to retail, as well as professional and well-informed investors.
AIFs with an unlimited number of persons must appoint a global custodian. They can be listed on a recognised stock exchange, and AIFs marketed to retail investors can be traded.
For more information regarding the Cyprus AIFs and a free consultation with one of our experts please contact us.