Basic Facts for Alternative Investment Funds ( AIF’s).

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Facts Sheet on Alternative Investment Funds ( AIFs)

 

In Cyprus, the regulatory authority for Alternative Investment Funds is the Cyprus Securities and Exchange Commission (CySEC).

 

Eligible Investors:

  • Retail Investors
  • Well Informed Investors
  • Professional Investors

 

AIFs are categorised as follows:

  • AIF with Unlimited Number of Investors
  • AIF with Limited Number of Investors (up to 75)

 

Legal Forms of AIFs

  • Common Fund
  • Investment company with shares (either with fix or variable capital)
  • Limited Liability Partnership

 

Type of Investments:

  • Venture Capital
  • Private Equity
  • Real Estate
  • Derivatives
  • Debt and Equity Securities
  • Mutual Funds
  • Loan Origination funds

 

AIF with Unlimited number of Investors

  • All investors eligible (professional, well-informed, retail)
  • Listed and traded on a recognize stock exchange
  • Minimum capital requirement of €125.000
  • Managed by External Manager

 

AIF with Limited number of Investors:

  • Eligible investors: Professionals and well-informed
  • Maximum number of Investors 75
  • No subject to minimum capital requirements
  • No need for External Manager if certain conditions are met

 

Benefits

  • Flexibility
  • Transparency
  • Investor Protection
  • Reasonable regulatory requirements
  • Tax efficiency
  • Low set-up and operational costs

 

Why Cyprus

  • EU Member
  • Favourable Tax Regime
  • Well-regulated jurisdiction
  • High standard of professional services
  • Low cost

 


 

If you require legal support on Alternative Investment Funds ( AIF’s) related matter, please contact us and our lawyers would be glad to assist.

 

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