Fund Structure and Type

UCITS funds are regulated investment funds that can be marketed to retail investors across the European Union (EU) under a harmonized regulatory framework.

An Alternative Investment Fund (AIF) is a collective investment vehicle that pools capital from multiple investors to invest in various asset classes such as real estate, hedge funds, private equity, and venture capital. AIFs offer diversified investment opportunities beyond traditional stocks and bonds, typically targeting institutional or high-net-worth investors. They are regulated under the Alternative Investment Fund Managers Directive (AIFMD) in the European Union.

The Registered Alternative Investment Fund (RAIF) in Cyprus is a flexible investment vehicle designed for professional and well-informed investors. It operates without direct CySEC regulation, instead being managed by a licensed Alternative Investment Fund Manager (AIFM). Governed by the Alternative Investment Funds Law of 2018, RAIFs offer broad investment flexibility, can be structured in various legal forms, and benefit from EU passporting rights for distribution across the EU. They provide transparency and investor protection through AIFM oversight, while also taking advantage of Cyprus' favorable tax regime and strategic location.

An Alternative Investment Fund Manager (AIFM) is a regulated entity responsible for managing and overseeing Alternative Investment Funds (AIFs), ensuring compliance with legal and regulatory requirements. AIFMs conduct portfolio management, risk management, and reporting activities, playing a crucial role in investor protection and fund performance. They operate under the framework of the Alternative Investment Fund Managers Directive (AIFMD) in the European Union.

European Venture Capital Funds (EuVECA) are investment funds that specialize in providing financing to small and medium-sized enterprises (SMEs) in their early stages of development across the EU. They benefit from a streamlined regulatory framework aimed at facilitating cross-border fundraising and investment. European Social Entrepreneurship Funds (EuSEF) are investment funds dedicated to supporting social enterprises that have a positive social impact. They adhere to specific criteria set by EU regulations and aim to attract investment into ventures that combine financial returns with social benefits.

Real Estate Funds (REFs) are companies that own, operate, or finance income-producing real estate. They provide investors with an opportunity to invest in portfolios of real estate assets through the purchase of shares or units, similar to mutual funds. REFs are known for distributing a significant portion of their income as dividends, making them attractive for income-seeking investors. They often focus on specific sectors such as residential, commercial, or industrial properties.