Alternative Investment Fund Manager (AIFM)

Do you want your company to become an Alternative Investment Fund Manager (AIFM) or even incorporate a new company to manage another member state of third country AIF? 

Alternative Investment Fund Manager (AIFM) 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 easily distribute their funds to investors in all EU countries.

Every AIFM shall engage, at least, in the following core investment management functions when managing an AIF:

-    Portfolio management 
-    Risk management 

To answer your question on what kind of services can an AIFM perform, see below an extensive list services that you can offer though your AIFM regulation:

•    Administration Services:

-    Legal and fund management accounting services; 
-    Customer inquiries;
-    Valuation and pricing, including tax returns; 
-    Regulatory compliance monitoring; 
-    Maintenance of unit/shareholder register; 
-    Distribution of income;
-    Unit/Shares issues and redemptions;
-    Contract settlements, including certificate dispatch; 
-    Record keeping.

•    Marketing services

•    Activities related to the assets of the AIF, such as:

-    Services necessary to meet the fiduciary duties of the AIFM;
-    Facilities management;
-    Real estate administration activities;
-    Advice to undertakings on capital structure;
-    Industrial strategy and related matters;
-    Advice and services relating to mergers and the purchase of undertakings.

•    Management of portfolios of investments

How to grant authorisation?

-    Have the initial capital requirement of €125,000 as stated in the law.
-    In the case that the AIMF exceeds €250 million, shall provide an additional amount of own funds, equal to 0.02% of the amount by which the value of the porfolios of the AIFM with the maximum not exceeding €10 million.
-    Maintain the head office and registered office in the Republic of Cyprus.
-    Ensure that the AIFM has sufficient initial capital and own funds.
-    the shareholders or members of the AIFM that have qualifying holdings are suitable taking into account the need to ensure the sound and prudent management of the AIFM.
-    The persons who effectively conduct the business of the AIFM are of sufficiently good repute and are sufficiently experienced also in relation to the investment strategies pursued by the AIFs managed by the AIFM, the names of those persons and of every person succeeding them in office being communicated forthwith to the Commission and the conduct of the business of the AIFM being decided by at least two persons meeting such conditions.