Cyprus, Investment Funds Powerhouse
Armed with a fully upgraded and modernised regulatory framework,
Cyprus is ready to compete for big fund business in the alternative investment
space even during the most unstable of times.
The island’s cost-effectiveness, its flexible and recently updated legislation,
as well as its proximity to the Middle East and Africa, and longstanding
preferential access to Eastern Europe, post-Soviet states and Russia,
are some of the key reasons why market players have started turning to the island.
The steady growth in both Assets under Management and in the number of fund
structures licenced and active in Cyprus have underlined the strength and appeal
of the novice domicile. Assets under Management (AuM) have increased
drastically from €2.7 billion in 2016 to €11.6 billion in the third quarter of 2021,
showing that it is not the sector’s size but its fast growth that has impressed,
and is being recognised by the global asset management and investor community.
Although Cyprus has secured some UCITS business, it looks to specialise in the
structuring of alternative assets in sectors where it already has a strong global
presence such as shipping, energy, real estate and wealth management.
Considering Cyprus’ epic legendary resolve, resilience and ambition, the long-term
outlook remains very promising to say the least.