AIFs that are established under domestic Cyprus fund legislation can be sold on a private placement basis or marketed to professional investors across the EU under the Alternative Investment Fund Managers Directive (AIFMD) passport.
AIFs at a Glance
| AIF with Limited number of Persons
| AIF with Unlimited number of Persons
| Registered AIF (RAIF) | |
| Regulatory Authority
| CySEC
| CySEC
| CySEC – however no licensing required
|
| Limitation on number of Investors
| 50 (with look through provisions) | Not applicable | Not applicable |
| Available Structures*
| Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Limited Partnership (LP)
| Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Common Fund (CF), Limited Partnership (LP)
| Variable Capital Investment Company (VCIC), Fixed Capital Investment Company (FCIC), Common Fund (CF), Limited Partnership (LP)
|
| Umbrella Funds | Possible for all structures
| Possible for all structures
| Possible for all structures
|
| Minimum Share Capital
| self-managed funds only €50,000 | self-managed funds only €125,000 | externally managed the RAIF does not require minimum share capital
|
| External Manager Licensing Requirement
| No, can be self-managed | No, can be self-managed | Yes, always externally managed
|
| Director Requirements
| Fit and Proper
| Fit and Proper
| Fit and Proper |
| Depositary Requirements
| Based in Cyprus, EU or third country that has cooperation agreement with Cyprus; exemption in specific circumstances
| Based in Cyprus, EU or third country that has cooperation agreement with Cyprus. When managed by AIFM shall be located in Cyprus
| Always based in Cyprus, except for Limited Partnerships managed by a MiFID entity |
| Reporting **
| Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders
| Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders | Audited annual report and half-yearly unaudited report to be submitted to CySEC and made available to unitholders
|
** Additional reporting requirements apply for AIFs with unlimited number of persons which are subject to the AIFM Law and for Registered AIFs, the scope and frequency of which depend among others in the type of AIF managed by the AIFM and the level of AuM
