While the number of fund management entities in Cyprus
edged down in early 2025, total assets under management rose sharply, highlighting
a shift in capital concentration and investment preference across the country’s
financial sector.
The Cyprus Securities and Exchange Commission (CySEC)
reported that the collective investments sector reached €10.7 billion in total
assets under management (AUM) during the first quarter of 2025, up 6.64% from
the previous quarter.
This growth occurred despite a 1.8% annual drop in the
number of supervised Management Companies and Undertakings of Collective
Investments (UCIs), now standing at 322.
Private Equity Investment
Allocations
CySEC’s latest bulletin revealed changing allocation
patterns among Cyprus-based UCIs. Alternative Investment Fund Managers (AIFMs)
continue to dominate the market, managing 63% of all assets. UCITS Management
Companies account for 10%, while Sub-threshold AIFMs manage 9%. Only 1% of
assets are overseen by foreign fund managers.
Private equity emerged as the largest investment
category, representing 31% of total AUM among Alternative Investment Funds
(AIFs), Limited Number Persons AIFs (AIFLNPs), and Reserved AIFs (RAIFs).
Real estate made up 16.6%, while hedge funds and funds
of funds held shares of 12.5% and 12.3% respectively. A new breakdown offered
for the first time shows that within private equity, 36.2% was allocated to
growth capital and 34.2% to multi-strategy investments.
Local Investments and Investor Types
Out of the 224 UCIs with active operations, 198 are
domiciled in Cyprus, collectively holding 72.4% of total AUM. Notably, 162 of
these entities direct some or all of their investments locally.
These domestic allocations total €2.9 billion, or just
over 27% of Cyprus’ overall fund assets. Private equity leads the way in local
deployment, representing more than 70% of these Cyprus-based investments.
Retail investors dominate the UCITS space, comprising
99.1% of its 8,831 investors. In contrast, the investor base for AIFs, AIFLNPs,
and RAIFs skews toward professionals and well-informed individuals. Only 12.1%
of these investors are classified as retail, with 63.4% deemed well-informed
and 24.5% professional.
UCITS Focus on Transferable Securities
Within the UCITS framework, a significant
majority—86.7%—of funds are invested in transferable securities. A further 9%
of assets go into other UCITS and collective investment schemes, while 3.3% is
kept in bank deposits.
The more diverse “Other” category of investment
includes 32.2% in equity capital and 16.8% in fixed income, alongside smaller
shares in cash, commodities, and infrastructure.
While the number of fund management entities in Cyprus
edged down in early 2025, total assets under management rose sharply, highlighting
a shift in capital concentration and investment preference across the country’s
financial sector.
The Cyprus Securities and Exchange Commission (CySEC)
reported that the collective investments sector reached €10.7 billion in total
assets under management (AUM) during the first quarter of 2025, up 6.64% from
the previous quarter.
This growth occurred despite a 1.8% annual drop in the
number of supervised Management Companies and Undertakings of Collective
Investments (UCIs), now standing at 322.
Private Equity Investment
Allocations
CySEC’s latest bulletin revealed changing allocation
patterns among Cyprus-based UCIs. Alternative Investment Fund Managers (AIFMs)
continue to dominate the market, managing 63% of all assets. UCITS Management
Companies account for 10%, while Sub-threshold AIFMs manage 9%. Only 1% of
assets are overseen by foreign fund managers.
Private equity emerged as the largest investment
category, representing 31% of total AUM among Alternative Investment Funds
(AIFs), Limited Number Persons AIFs (AIFLNPs), and Reserved AIFs (RAIFs).
Real estate made up 16.6%, while hedge funds and funds
of funds held shares of 12.5% and 12.3% respectively. A new breakdown offered
for the first time shows that within private equity, 36.2% was allocated to
growth capital and 34.2% to multi-strategy investments.
Local Investments and Investor Types
Out of the 224 UCIs with active operations, 198 are
domiciled in Cyprus, collectively holding 72.4% of total AUM. Notably, 162 of
these entities direct some or all of their investments locally.
These domestic allocations total €2.9 billion, or just
over 27% of Cyprus’ overall fund assets. Private equity leads the way in local
deployment, representing more than 70% of these Cyprus-based investments.
Retail investors dominate the UCITS space, comprising
99.1% of its 8,831 investors. In contrast, the investor base for AIFs, AIFLNPs,
and RAIFs skews toward professionals and well-informed individuals. Only 12.1%
of these investors are classified as retail, with 63.4% deemed well-informed
and 24.5% professional.
UCITS Focus on Transferable Securities
Within the UCITS framework, a significant
majority—86.7%—of funds are invested in transferable securities. A further 9%
of assets go into other UCITS and collective investment schemes, while 3.3% is
kept in bank deposits.
The more diverse “Other” category of investment
includes 32.2% in equity capital and 16.8% in fixed income, alongside smaller
shares in cash, commodities, and infrastructure.
This post is originally published on FINANCEMAGNATES.
