A new law governing the licencing and operation of the Alternative Investment Fund Managers below the thresholds set by the Alternative Investment Fund Managers Directive 2011/61/EU (the “AIFMD”) was enacted on the 3rd of July 2020. The new law governs the establishment, the authorization procedure, the legal requirements and the operation of the so-called Mini Managers.
The Mini Managers are entitled to manage Alternative Investment Funds (“AIFs”) whose assets under management do not exceed the amount of Euro 100 million, including assets acquired through the use of leverage or the amount of Euro 500 million without the use of leverage, with no redemption rights exercisable during a period of 5 years from the date of the initial investment.
The following types of AIFs may be managed by a Mini Manager:
The key requirements applicable to the Mini Managers as per the new law are:
The introduction of the legislation for Mini Managers enriches the fully advanced and modernised legislative framework for alternative investment funds in Cyprus creating new opportunities and motives for fund managers to act in a lighter regulatory regime.
For further information on this new law on the sub-threshold fund managers, please contact us at FinancialServices@kinanis.com.
Partner - Financial Services
Associate Lawyer - Financial Services