2023 CIFA Investment Funds Guide

38 CYPRUS INVESTMENT FUNDS 2023-24
MARKETING FUNDS
IN THE EU AND FUND HOSTING
Cyprus can offer specific advantages to non-EU fund managers wishing to raise
capital in Europe, as well as to develop a presence in the European market to
benefit from the right to distribute their funds to investors in all EU countries.
One of the key issues constantly monitored
and assessed by many non-EU fund
managers is whether it makes sense
to establish a European Management
Company. There are related reasons for
such considerations; first, the difficulties
associated with utilising the private
placement regimes, and second, the
recognition that even if or when the AIFMD
marketing passport is extended to non-
European fund managers, there is likely to
be a period of uncertainty of the application
and approach to be followed – and which in
any case demands full compliance with the
AIFMD requirements. As such, establishing a
European Management Company may seem
the more attractive solution. In this respect,
the Cyprus fund ecosystem offers a vast
network of professional service providers
and administrators of international calibre,
qualified human capital, and a favourable
legal environment for management
company domiciliation.
Management Company
Platforms
Another solution is the use
of Management Company
platforms, which are currently
the most popular means
of gaining entrance into
Europe. This trend is on an
upward trajectory with the
number of platform providers
growing in Cyprus and
across the rest of Europe.
Business
model
review
IT infrastructure
& support
Risk
management
HOST
SERVICES
OFFERING
Capital
introductions
Marketing
in the EU
Regulatory
compliance
Advisory
services