cyprus investment — cyprus investment — The collective investments sector in Cyprus has reached a remarkable €11.4 billion in assets under management, reflecting a 7.5 per cent increase in the third quarter of 2025. This growth underscores the sector’s resilience and appeal among investors.
- The latest figures reflect a vibrant growth trajectory for Cyprus’ collective investments sector, highlighting evolving trends in asset allocation across various classes and sectors of the economy.
According to the Cyprus Securities and Exchange Commission (CySEC), the data was released in their quarterly statistics bulletin. The report details that CySEC supervised 312 management companies and collective investment undertakings during this period, a slight decrease from 323 in the same quarter of the previous year.
The breakdown of these entities is telling. It includes 217 externally managed undertakings, 29 internally managed ones, and 66 external fund managers. Among these, there are 46 Alternative Investment Fund Managers (AIFMs), 44 sub-threshold AIFMs, two UCITS management companies, and three that operate under dual licences.
Key figures reveal that the net asset value of the undertakings managed by these companies reached €10.1 billion. Delving deeper into the asset management composition, it is noted that 63 per cent of the total assets are managed by AIFMs, with 17 per cent managed by both AIFMs and UCITS management companies, and 10 per cent by UCITS management companies alone.
Investment patterns within these managed assets illustrate a diverse portfolio. In the case of UCITS, 85.8 per cent of their assets are allocated to transferable securities, while 10.9 per cent is directed towards UCITS and other collective investment undertakings, and 3.2 per cent is in bank deposits.
Alternative investment funds (AIFs), AIF Limited Partnerships (AIFLNPs), and Registered AIFs (RAIFs) show significant allocations as well, with 30.7 per cent of their assets in private equity, 17 per cent in real estate, and 14.5 per cent in hedge funds. Funds of funds constitute 9.7 per cent of the total assets under management, with the remaining 28.1 per cent classified under other categories.
In terms of private equity investments, a breakdown reveals that 38.9 per cent is allocated to multi-strategy capital, 34.1 per cent to growth capital, and 16.9 per cent to venture capital, with a small fraction, 0.5 per cent, dedicated to mezzanine financing.
The report also highlights that 69.7 per cent of the overall assets under management are held by 205 UCIs based in Cyprus. This includes 11 UCITS, 51 AIFs, 40 AIFLNPs, and 103 RAIFs. Out of the 230 UCIs operating, 165 have investments in Cyprus, contributing over €2.8 billion, which represents 24.8 per cent of the total assets under management.
Investments directed towards Cyprus show a strong inclination towards private equity, comprising 71.1 per cent, while 12.8 per cent is allocated to real estate. The investor landscape varies significantly across different fund types; for instance, 99.2 per cent of UCITS investors are retail investors, totalling 8,727 individuals. In contrast, among AIFs, AIFLNPs, and RAIFs, 64.7 per cent of the 3,674 investors are classified as well-informed, with professional and retail investors making up 26 per cent and 9.4 per cent respectively.
Sectoral investment exposure also paints a vivid picture. Approximately €471.6 million was channelled into the energy sector, accounting for 4.13 per cent of the total assets under management, while fintech attracted €106.9 million, representing 0.94 per cent. The shipping industry received a notable €581.8 million, which is 5.09 per cent of the total, and sustainable investments totalled €97.9 million, making up 0.86 per cent of assets.
The latest figures reflect a vibrant growth trajectory for Cyprus’ collective investments sector, highlighting evolving trends in asset allocation across various classes and sectors of the economy.
