Cyprus' collective investment sector continues to play an important role in the country's financial system. According to the quarterly statistical bulletin published by the Cyprus Securities and Exchange Commission (CySEC), investment firms managed assets worth €11.2 billion at the end of the fourth quarter of 2025.
Although assets under management declined by 1.97% compared to the third quarter of 2025, experts note that the market remains stable and continues to attract international investors thanks to Cyprus' favourable regulatory framework, EU membership, and well-developed financial services infrastructure.
How many investment companies operate in Cyprus?
As of the end of the fourth quarter of 2025, the Cyprus Securities and Exchange Commission supervised 312 fund management companies and collective investment organisations. By comparison, 321 entities were under regulation a year earlier.
Of the total, 217 were externally managed funds, 30 were internally managed funds, and a further 65 were external fund management companies.
Licensed managers included 45 Alternative Investment Fund Managers (AIFMs), 45 sub-threshold Alternative Investment Fund Managers, 2 UCITS management companies, and 3 dual-licensed firms authorised to manage both alternative investment funds and UCITS.
Assets under management exceed €11 billion
Total Assets Under Management (AUM) amounted to €11.2 billion, while the combined Net Asset Value (NAV) reached €10.1 billion. The largest share of assets, 62.4%, is managed by licensed Alternative Investment Fund Managers (AIFMs). Another 17.1% is managed by firms holding both AIFM and UCITS licences. Traditional UCITS managers account for 11.2% of assets, sub-threshold Alternative Investment Fund Managers for 8.7%, while 0.6% of assets belong to funds managed by foreign management companies.
Where Cypriot funds invest
Investment allocations vary depending on the type of fund. UCITS funds remain focused on liquid financial instruments, with 85.2% of their assets invested in securities, 12% in units of other investment funds, and 2.6% held in bank deposits. Alternative investment funds (AIFs, AIFLNPs, and RAIFs) maintain a more diversified investment strategy. The largest allocation, 32.8%, is invested in private equity, followed by real estate, which accounts for 20.4% of portfolios. Another 10.9% is invested in investment fund units, 9.7% in hedge funds, while the remaining 26.2% falls into the category of "other assets."
Within the private equity segment, 37.3% of investments are allocated to multi-strategy funds, 33.2% to growth equity, 17.7% to venture capital, and 0.7% to mezzanine financing. Within the "other assets" category, 36.1% consists of equity investments, 13.6% of debt securities, and 7.1% of cash and cash equivalents. Commodities account for 1.7%, while infrastructure projects represent 0.1%.
Investment in the Cypriot economy
Most of the market is concentrated in Cypriot investment funds. A total of 72.2% of all assets under management belong to 209 Cyprus-based investment funds, including 11 UCITS, 51 Alternative Investment Funds (AIFs), 40 AIFLNPs, and 107 Registered Alternative Investment Funds (RAIFs).
Of the 233 active funds, 170 invest all or part of their assets directly in the Cypriot economy. These investments totalled €2.9 billion, representing 26% of total assets under management. The majority of this capital is invested in private equity (70.3%), while a further 12.7% is allocated to real estate. This confirms that investment funds continue to play an important role in financing Cypriot businesses, property development projects, and the corporate sector.
Who invests in Cypriot funds?
Most investors in UCITS funds are private individuals, who account for 99% of all investors, with the total number reaching 8,714. The investor profile differs significantly in alternative investment funds. Of the 3,775 investors, 64.2% are classified as well-informed investors, 26.7% are professional investors, and retail investors account for 9.1%. This structure is typical of alternative funds, which are generally aimed at high-net-worth individuals, institutional investors, and international capital.
During the fourth quarter of 2025, investment funds continued to actively finance several sectors of the economy. The energy sector attracted €478 million, representing 4.27% of total assets under management. Investments in financial technology (fintech) projects amounted to €123.2 million (1.1%). The maritime sector received €637.8 million (5.69%), while €100.7 million, or 0.90% of total assets, was invested in sustainability and ESG-related projects.
Experts note that Cyprus continues to strengthen its position as an international hub for collective investment. Supported by European regulation, a flexible licensing framework, and sustained interest from foreign investors, the investment fund sector remains one of the key drivers of the country's financial market despite the slight quarterly decline in assets under management.