LLPO Law Firm
  • Home
    • Law Firm Profile
  • People
    • Michael O. Ioannides >
      • Blog Posts
      • Social
    • Andreas N. Leonidou >
      • Social
    • Christos O. Ioannides >
      • Social
    • Maria Angelides
    • Agathoklis Korellis
    • Margarita Theophilou
    • Andreas Karamanos
    • Nikoletta Agrotou
    • Panayiota Zacharia
    • Marieta Peratikas
    • Yiannis Seraphim
    • Maria Polyviou
    • Vasiliki Chamba
    • Theodora Spetsioti
  • Αρχικη
  • ГЛАВНАЯ
  • ΑΝΘΡΩΠΟΙ
  • Litigation
    • Commercial Litigation >
      • People
    • Criminal Litigation >
      • People
    • Personal Injuries >
      • People
    • Banking Litigation >
      • People
    • Class Actions >
      • People
    • Medical Negligence >
      • People
  • Advisory
    • Financial Services >
      • Experience
      • Resources
      • People
    • Corporate >
      • Services
      • Resources
      • People
    • Lotteries, Gaming and Gambling Regulation >
      • Services
    • Educational Services >
      • People
  • Services
    • Alternative Funds (AIF)
    • Mutual Funds (UCITS)
    • Permanent Residence Permit
    • Yacht Leasing Scheme
    • Cyprus International Trusts
    • Cyprus Investment Firms (CIF)
    • Payment Institutions
    • Electronic Money Institutions
  • ΥΠΗΡΕΣΙΕΣ
  • УСЛУГИ
    • Альтернативные Фонды
    • Mutual Funds (UCITS)
    • Паспорт Инвестора ЕС
    • Permanent Residence Permit
    • Yacht Leasing Scheme
    • Cyprus International Trusts
    • Cyprus Investment Firms (CIF)
    • Payment Institutions
    • Electronic Money Institutions
  • Blog
  • Contact
  • Επαφη
  • КОНТАКТЫ
  • Финансовые Услуги
  • Корпоративные Услуги
    • Услуги

The types of Alternative Investment Funds in Cyprus

18/2/2019

0 Comments

 
Picture
#funds #alternativefunds #aif #moi
The Alternative Investment Funds Law of 2018 provides for three types of investment funds in Cyprus.
Alternative Investment Fund (AIF)

An AIF is available to an unlimited number of investors, which can be promoted to any investor, encompassing retail investors.
AIFs may be established as variable or fixed capital investment companies, common funds and limited partnerships. A single depository must be appointed for each AIF, which is established either locally or in another EU Member state or in a third country.
AIFs can be either internally or externally managed. Initial capital for authorisation under the legislation is necessary only for self-managed AIFs, since they also act as the fund’s manager, which will be €125.000.
However, both externally and internally AIFs will have to raise capital of at least €500.000 during their first 12 months of operations. Its Board of Directors shall be comprised of at least 2 executive and 2 non-executive directors.
AIFs are subject to the Categorisation Directive, which specifies their investment policy, depending on the category of investors to which they are addressed or marketed.

Alternative Investment Fund with Limited Number of Persons (AIFLNP)

An AIFLNP is available to 50 investors or less, which can be marketed only to professional or well-informed investors. AIFLNPs, may be established as fixed or variable capital Investment companies and limited partnerships.
An internally managed AIFLNP has a dual role (fund and fund manager) and therefore the legislation has introduced an initial capital requirement for internally managed AIFLNPs of €50.000. AIFLNPs must reach €250.000 within the first 12 months of their operation.
A Depositary may not be appointed when (a) the total assets of the fund do not exceed €5 million, or (b) the number of unit-holders is limited to five, or (c) the number of unit-holders is limited to 25 and only 10% of the fund’s total assets are subject to custody, and each unit-holder has invested at least €500.000 in the fund.
The new legislation also clarifies that, when the AIFLNP is self-managed, its Board of Directors shall be comprised of at least one executive and two non-executive directors.

Registered Alternative Investment Fund (RAIF)

RAIFs will be registered in a Registry but will neither be authorized nor regulated directly by CySEC. It will still be considered as ‘AIF’ by virtue of the Law, offering new opportunities for a quick and cost-effective fund launch.
Their supervision and monitoring will be performed by the AIF Manager (‘AIFM’), managing the RAIF. They can be marketed only to professional or well-informed investors.
The RAIF can be organised in any legal form available under Cyprus Law, it can be open or closed ended and be established with multiple compartments. There are no restrictions in its investment strategy, however the RAIF cannot be set up as Loan Origination, Fund of Funds or Money Market Funds.
Third country AIFMs will also be able to register RAIFs to CySEC, provided that their country of establishment has granted passporting rights pursuant to the AIFMD. RAIFs may also use EU marketing passport via its AIFM.

AIFLNP

AIF

RAIF

Licensing

Licensed by the Cyprus and Exchange Commission (CySEC)

Registered with CySEC not licensed

Legal Forms

Variable Capital Investment Company (VCIC)

Fixed Capital Investment Company (FCIC)

Limited Partnership (LP)

Common Fund (CF)

Variable Capital Investment Company (VCIC)

Fixed Capital Investment Company (FCIC)

Limited Partnership (LP)

Eligible Investors

May only be marketed to  “Professional” and/or “Well-Informed” investors

May be marketed to either “Professional” and/or “Well-Informed” or “Retail” investors

May only be marketed to “Professional” and/or “Well-Informed” investors

No. Investors

 Up to 50 investors

Unlimited number of investors

Min. Capital

EUR 50.000, if the fund is internally managed

EUR 125.000, if the fund is internally managed

N/A

Units

May not be listed or traded but may be registered on a special registry kept with the Cyprus Stock Exchange

May obtain an ISIN

May be listed or traded on a regulated market or  MTF

Investment Manager

Can be internally managed or appoint an external Fund Manager

Obligation to appoint a Fund Manager (AIFM)

Asset Classes

No restrictions

Subject to the Categorisation Directive

Cannot be set up as Loan Origination, Fund of Funds or Money Market Funds.

Assets under management

Up to EUR 100 ml including leverage or EUR 500 ml with no use of leverage and no redemption rights for 5 years

No restrictions if AIFM appointed

Up to EUR 100 ml including leverage or EUR 500 ml with no use of leverage and no redemption rights for 5 years if not AIFM appointed

No restrictions

Depositary

Cyprus, EU or in a third country based

May be waived if one of the following criteria is met:

- total assets of the Fund < EUR 5 mln

- up to 5 investors

- up to 25 investors with a minimum subscription of EUR 500.000 and only 10% of the Fund’s total assets are subject to custody

Mandatory appointment of a local Depositary if managed by an AIFM

Cyprus, EU, or in a  third country based if AIFM not appointed. May be waived in case the total assets of the AIF are not subject to custody.

Obligation to appoint a Depository

Umbrella Structure

Yes

For more information check Alternative Funds (AIF) or contact Michael O. Ioannides.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    September 2020
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    August 2018
    July 2018
    June 2018
    March 2018
    October 2016
    September 2016
    November 2015
    October 2015
    September 2015
    April 2014
    March 2014
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    June 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    April 2011
    March 2011
    November 2010

    Categories

    All
    Accident
    Alert
    Andreas Leonidou
    Bail In
    Banking
    Betting
    Business
    CFC
    CHF
    Christos Ioannides
    CIF
    Citizenship
    Company
    Corporate
    Criminal Law
    CSE
    Customs
    Cylon
    Cyprus
    CySEC
    David Anderson
    Depositors
    Dividends
    Double Tax Treaties
    ECM
    Education
    Enviromental
    Eurogroup
    Europe
    Exclusive Economic Zone
    Financial
    Finland
    Foreign Currency
    Forum
    Framework
    Fraud
    Gambling
    Greece
    Health & Safety
    ICIS
    India
    Innovation
    Investors
    IP
    Law
    Lawsuit
    Legislation
    Levy
    Luxemburg
    Maria Panayiotou
    Michael Ioannides
    News
    NOMAD
    Oil And Gas
    Passport
    Portugal
    Property
    Property Rights
    Real Estate
    Residence Permit
    Russia
    Securities
    Spain
    Switzerland
    Tax
    Ukraine
    Unitary Patent
    United Kingdom
    Universities
    VAT
    Yacht

    RSS Feed

Cyprus (Head Office)

15 Agion Omologiton Avenue
1080, Nicosia 

Cyprus
✆ +357 22 452 600 
⎙ +357 22 452 611

Greece

05 Paleologou Street 
18535, Athens 
​
Greece
✆ +30 210 3617152
⎙ +30 210 3617153

United Kingdom

235 Regents Park Road
London N3 3LF 
United Kingdom

✆+44 203 588 4107

Picture
   info@llpolawfirm.com
© 2015 LLPO Law Firm. All Rights Reserved.