Cyprus investment funds assets fall to €11. 2bn — €2. 9bn invested in local economy
The assets under management of Cyprus' collective investment sector fell to €11. 2 billion in the fourth quarter of 2025, according to figures published on Wednesday by the Cyprus Securities and Exchange Commission (CySEC), reflecting a 1. 97 per cent quarter-on-quarter decline. CySEC's latest quarterly statistics bulletin showed that it supervised 312…
Private equity leads alternative fund investments in CyprusTheassets under management of Cyprus’ collective investment sectorfell to€11. 2 billion in the fourth quarter of 2025, according to figures published on Wednesday by the Cyprus Securities and Exchange Commission (CySEC), reflecting a1. 97 per cent quarter-on-quarter decline. CySEC’s latest quarterly statistics bulletin showed that it supervised312 management companies and undertakings of collective investments (UCIs)during the period, down from321 entitiesin the corresponding quarter of 2024. The regulator explained that the total comprised217 externally managed UCIs, 30 internally managed UCIs and 65 external fund managers. Among the management companies, there were45 Alternative Investment Fund Managers (AIFMs), 45 sub-threshold AIFMs, two UCITS management companies and three dual-licence entitiesauthorised to operate as both AIFMs and UCITS management companies. The report showed thattotal assets under management (AUM)stood at€11. 2bn, representing a1. 97 per cent decreasecompared with the third quarter of 2025. At the same time, thenet asset value (NAV)of UCIs managed by these firms amounted to€10. 1bn. CySEC’s figures indicate that62. 4 per cent of assets under management were overseen by AIFMs, while17. 1 per centwere managed by dual-licensed AIFM and UCITS management companies. A further11. 2 per centof assets were managed by UCITS management companies,8. 7 per centby sub-threshold AIFMs and0. 6 per centby regulated UCIs managed by foreign fund managers. The data also highlighted the different investment profiles of UCITS and alternative investment funds. AmongUCITS, which are regulated investment funds typically marketed to retail investors across the European Union,85. 2 per cent of assets under management were invested in transferable securities,12 per centin other UCITS and collective investment undertakings, and2. 6 per centin bank deposits. Foralternative investment funds (AIFs), AIFLNPs and Registered Alternative Investment Funds (RAIFs),private equity represented the largest investment category at 32. 8 per centof assets under management. Real estate accounted for20. 4 per centof these funds’ investments, whilefunds of fundsrepresented10. 9 per centandhedge fundsmade up9. 7 per cent. The remaining26. 2 per centof assets fell under the broad“other”investment category. Within private equity,37. 3 per centof investments were allocated tomulti-strategy capital,33. 2 per centtogrowth capital,17. 7 per centtoventure capital, and0. 7 per centtomezzanine financing. Within the“other”investment category,36. 1 per centwas invested in equity capital,13. 6 per centin fixed income and7. 1 per centin cash and cash equivalents, while commodities and infrastructure accounted for1. 7 per centand0. 1 per centrespectively. The report also showed that72. 2 per cent of total assets under management were held by 209 UCIs domiciled in Cyprus, consisting of11 UCITS, 51 AIFs, 40 AIFLNPs and 107 RAIFs. Out of the233 UCIs with active operations,170 invested either partly or entirely in Cyprus, with those investments exceeding€2. 9bn, equivalent to26 per cent of total assets under management. Within Cyprus,70. 3 per cent of investments were directed towards private equity, while12. 7 per centwere allocated toreal estate. The statistics also provided insight into the sector’s investor base. Among UCITS,99 per cent of investors were retail investors, representing a total of8,714 investors. For AIFs, AIFLNPs and RAIFs, the regulator recorded3,775 investors, of whom64. 2 per cent were classified as well-informed investors,26. 7 per centas professional investors and9. 1 per centas retail investors. CySEC also broke down investment exposure to selected sectors. Theenergy sectoraccounted for€478 million, representing4. 27 per cent of total assets under management. Investments infintechreached€123. 2m, equal to1. 1 per centof total assets, the commission reported. Theshipping sector, meanwhile, attracted€637. 8m, accounting for5. 69 per centof assets under management. Finally, the commission reportedsustainable investmentstotalled€100. 7m, representing0. 90 per centof the sector’s overall assets.