Cyprus funds diversify across energy, shipping, and fintech

The Cyprus Securities and Exchange Commission (CySEC) on Friday reported that the number of Management Companies and Undertakings of Collective Investments (UCIs) reached 319 during the second quarter of 2025.

At the same time, CySEC’s quarterly statistics bulletin also showed that assets under management (AUM) recorded a slight decrease to €10.6 billion.

The commission stated that it supervised 319 Management Companies and UCIs during this time, compared to 328 in the same period of the previous year, representing a decrease of 2.74 per cent.

The total number of 319 entities included 222 Externally Managed UCIs, 30 Internally Managed UCIs, and 67 External Fund Managers.

Among Management Companies, there were 45 Alternative Investment Fund Managers (AIFMs), 45 Sub-threshold AIFMs, two UCITS Management Companies, and five dual-licensed entities operating as both AIFMs and UCITS Management Companies.

Based on the data, total assets under management amounted to €10.6bn, marking a 1.03 per cent decline compared to the first quarter of 2025.

UCIs managed by the Management Companies held a net asset value (NAV) of €9.8bn.

CySEC’s figures also showed that 62 per cent of total AUM related to assets managed by AIFMs, while 17 per cent was managed by entities licensed as both AIFMs and UCITS Management Companies.

A further 11 per cent of AUM was managed by UCITS Management Companies, nine per cent by Sub-threshold AIFMs, and one per cent by regulated UCIs managed by foreign fund managers.

When it comes to UCITS portfolios, 85.7 per cent of their AUM was invested in transferable securities, 9.1 per cent in UCITS and other UCIs, and 4.1 per cent in bank deposits.

For AIFs, AIFLNPs, and RAIFs, 31.6 per cent of AUM was invested in private equity, while 17.8 per cent went into real estate.

Investments in hedge funds accounted for 10.3 per cent, funds of funds made up 9.7 per cent, and the remaining 30.6 per cent was categorised as “Other” investments.

Within private equity, 33.7 per cent concerned multi-strategy capital, 31.1 per cent related to growth capital, 16.2 per cent to venture capital, and 4.4 per cent to mezzanine financing.

In the “Other” category, 38.2 per cent of investments were made in equity capital, 14.4 per cent in fixed income, and 6.6 per cent in cash and cash equivalents, while infrastructure and commodities followed at 2.9 per cent and two per cent, respectively.

The report further showed that 73.7 per cent of total AUM was held by 208 UCIs domiciled in Cyprus, which included 12 UCITS, 54 AIFs, 40 AIFLNPs, and 102 RAIFs.

Out of 230 UCIs in operation, 170 invested partially or entirely in Cyprus, representing €2.75bn, or 25.89 per cent of total AUM.

From these domestic investments, 70.4 per cent were in private equity, while 13.3 per cent were in real estate.

Regarding investor categories, CySEC found that 99.1 per cent of UCITS investors were retail clients, numbering 8,819 investors in total.

In the case of AIFs, AIFLNPs, and RAIFs, out of 3,639 investors, 62.9 per cent were well-informed investors, 25.3 per cent were professional, and 11.8 per cent were retail investors.

As for sectoral allocations, during the second quarter of 2025, €446.1 million, or 4.20 per cent of total AUM, was invested in the energy sector, while €581.7 million, or 5.47 per cent, was directed to shipping.

Investments also included €106.3m, or one per cent, in fintech, and €96.5m, or 0.91 per cent, in sustainable investments.