Fund Structuring
AIFs
Alternative Investment Funds with Unlimited Number of Persons
| Form: | Common Fund, Limited Partnership, Fixed Capital Investment Company, or Variable Capital Investment Company. |
|---|---|
| Fund Manager: | Can be either internally or externally managed. |
| Type and Number of Investors: | Retail, Well-Informed and Professional Unlimited number |
| Share capital: | A minimum of EUR 125.000 in case it is internally managed. There is no minimum requirement if it is externally managed. |
| Minimum capital raising: | EUR 500.000 for each investment compartment in the first 12 months from the authorization date from CySEC (Cyprus Securities and Exchange Commission). |
| Depositary: | Must be appointed for each fund and be in the country of its establishment. |
| Thresholds: | Internally managed assets under management do not exceed EUR 100m with leverage or EUR 500m without leverage and no redemption rights to the unitholders for 5 years from the date of the initial investment. |
| Investment Restrictions: | Depending on the investor type some investment restrictions may apply as per the classification directive of CySEC |
| European Passporting: | Marketing and management European passporting for professional investors is available to AIFs. For retail investors, the National Private Placement Regime of the targeted Member State must be used. |
AIFLNPs
Alternative Investment Funds with Limited Number of Persons
| Form: | Limited Partnership, Fixed Capital Investment Company, or Variable Capital Investment Company. |
|---|---|
| Fund Manager: | Either internally or externally managed. |
| Type and Number of Investors: | Well-Informed and Professional Up to 50 investors |
| Share capital: | A minimum of EUR 50.000 in case it is internally managed. There is no minimum requirement if it is externally managed. |
| Minimum capital raising: | EUR 250.000 in the first 12 months from the registration date from CySEC. |
| Depositary: | Exemptions for the appointment of a depositary apply when: (a) the total assets of the fund do not exceed EUR 5m, or (b) the number of unitholders is limited to five natural persons, or (c) the number of unitholders is limited to 25 natural persons and only 10% of the fund’s total assets are subject to custody, and each unitholder has invested at least EUR 500.000 in the fund. |
| Thresholds: | Internally managed assets under management do not exceed EUR 100m with leverage or EUR 500m without leverage and no redemption rights to the unitholders for 5 years from the date of the initial investment. |
| Investment Restrictions: | No investment restrictions for AIFLNPs. |
| European Passporting: | Not available for AIFLNPs. |
RAIFs
Registered Alternative Investment Funds
| Form: | Common Fund, Limited Partnership, Fixed Capital Investment Company, or Variable Capital Investment Company. |
|---|---|
| Fund Manager: | Always externally managed. |
| Type and Number of Investors: | Well-Informed and Professional Unlimited number |
| Share capital: | There is no minimum requirement. |
| Minimum capital raising: | EUR 500.000 for each investment compartment in the first 12 months from the registration date from CySEC. |
| Depositary: | Must be appointed for each fund and be in the country of its establishment. |
| Thresholds: | No thresholds apply as it must be managed by an authorized fund manager. |
| Investment Restrictions: | No investment restrictions, however, they cannot be set up as European Venture Capital Funds, European Social Entrepreneurship Funds, European Long-term Investment Funds or Money Market Funds. |
| European Passporting: | Marketing and management European passporting for professional investors is available to RAIFs. |
MAIN FUND CHARACTERISTICS
| AIF | AIFLNP | RAIF | |
|---|---|---|---|
| Reason of choice | Retail investors | Private local funds | Speed to market solution |
| Type of investors | Retail / Well-Informed / Professional | Well-Informed / Professional | Well-Informed / Professional |
| Min. investment | EUR 1 (Retail) / EUR 125.000 (Well-Informed) | EUR 125.000 | EUR 125.000 |
| Number of investors | Unlimited | 50 | Unlimited |
| Fund Manager | Internal or External | Internal or External | External |
| Capital Raising | EUR 500.000 | EUR 250.000 | EUR 500.000 |
| European Passporting | Yes | No | Yes |
| Depositary | Yes | Exemptions apply | Yes |
| Investment Restrictions | Yes | No | No |
Contact us to assist you in finding the most suitable solution for your requirements.
