Cyprus Alternative Investment Funds

Cyprus Funds

Cyprus offers three main Alternative Investment Fund (AIF) structures, each designed for different investor types and asset sizes. Below is a side-by-side breakdown of regulatory, structural and operational parameters.

Cyprus Funds

Three AIF structures

Choose based on investor cap, regulatory burden and minimum capital.

AIFUNP

Unlimited Investors

AIF with Unlimited Number of Persons. Professional, Well Informed and Retail investors. Internal or external management.

Min Capital €125,000
Min AUM €500k in 12mo
Investor cap None
CySEC supervision Yes
AIFLNP

Limited Investors

AIF with Limited Number of Persons. Up to 50 investors. Same investor categories as AIFUNP, with possible depositary exemptions.

Min Capital €50,000
Min AUM €250k in 24mo
Investor cap 50
CySEC supervision Yes
RAIF

Registered AIF

No prior CySEC authorisation required. Professional and Well Informed investors only, always externally managed.

Min Capital None
Min AUM €500k in 12mo
Investor cap None
Prior authorisation No

Full comparison table

Every dimension regulators weigh when selecting an AIF structure.

DetailAIFUNPAIFLNPRAIF
RegulationsPrior authorisation and ongoing prudential supervision by CySECPrior authorisation and ongoing prudential supervision by CySECNo prior authorisation
Number of investorsNo limitationLimited to 50No limitation
Categories of investorsProfessional, Well informed, RetailProfessional, Well informed, RetailProfessional, Well informed
Legal FormInvestment Company (fixed or variable capital), Limited Partnership (with or without legal personality), Common FundInvestment Company, Limited PartnershipSame as AIFUNP
Investment CompartmentsYesYesYes
ManagementInternally or externally managedSame as AIFUNPAlways externally managed
Depositary RequirementYesPossible exemptionsYes
ValuationFair value per constitutive documentsSame as AIFUNPSame as AIFUNP
Frequency of valuationsAt minimum on annual and half-yearly report dates and at each subscription or redemptionSame as AIFUNPSame as AIFUNP
Minimum share capital€125,000 for internally managed AIFs€50,000 for internally managed AIFsNo minimum requirement
Minimum AUM€500,000 within first 12 months from authorisation€250,000 within max 24 months€500,000 within max 12 months
AUM limitation thresholdNo restrictions if full scope AIFM appointed; otherwise up to €100m with leverage or €500m without leverage (5-year lock up)Up to €100m with leverage or €500m without leverage (5-year lock up)No limitation
Reporting RequirementsAudited annual report, half-yearly unaudited reports to CySEC and Unitholders; statistical reporting to Central Bank of CyprusSame as AIFUNPSame as AIFUNP
Independent AuditYesYesYes
SubscriptionsCash or assets relating to investment strategy, free from charge; contributions in kind require independent auditor valuationSame as AIFUNPSame as AIFUNP
Transferability of sharesGenerally not applicable except classified typesFreely transferable subject to AIF rulesSame as AIFUNP
Investment rulesGenerally defined by AIF rules; portfolio diversification required for retail-targeted AIFsNo restrictions except those in prospectusNo restrictions; retail or qualifying fund of funds
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Funds Companies Brochure

A complete overview of the Cyprus Funds framework, set up steps and ongoing compliance, in one PDF.

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Funds Companies Brochure
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