Alternative Investment Funds with Limited Number of Persons (‘AIFLNPs’)
Alternative Investment Funds with Limited Number of Persons (‘AIFLNPs’)
What is Alternative Investment Funds with Limited Number of Persons (‘AIFLNPs’)?
Alternative Investment Funds with a Limited Number of Persons or otherwise called ‘AIFLNPs’ are AIF’s with up to 50 investors and authorized as AIFLNPs under Part VII of Law 124(I)/2018 (‘Alternative Investment Funds Law’).
An AIFLNPs may be established in one of the following legal forms:
- Investment company
- Limited partnership, with or without separate legal personality
AIFLNPs may be:
- Internally-managed; or
- Externally managed
In case of an externally managed AIFLNP, the following entities may be appointed as external managers:
- Cyprus Investment Firms
- Small AIFMs / Mini Managers
- UCITS Management Company established in the Republic and which may manage collective investment undertakings other than UCITS
- Any company which, in accordance with its instruments of incorporation, has the sole purpose of providing the portfolio management service to the specific AIFLNP (the appropriateness of the manager shall be assessed by the CySEC)
- Investment Firm established in another member state
- UCITS Management Company authorised by another member state and which may manage collective investment undertakings other than UCITS
- AIF management company authorised in another member state, for the investment management of AIFs, who (a) manages portfolios of AIFs whose assets under management, including any assets acquired through use of leverage, in total do not exceed a threshold of EUR 100 million or (b) manages portfolios of AIFs whose assets under management in total do not exceed a threshold of EUR 500 million when the portfolios of AIFs consist of AIFs that are unleveraged and have no redemption rights exercisable during a period of 5 years following the date of initial investment in each AIF, and is subject to prudential supervision subject to the law of its home member state
- A company established in a third country which is authorised to provide the portfolio management service and is subject to prudential regulation regarding the provision of this service
