The Cypriot registered alternative investment fund (RAIF),
enables a fast and cost-efficient fund launch in the European
Union. RAIFs, which can be set up as standalone or umbrella funds,
can be managed by a fund manager located anywhere in the EU and do
not require individual licensing.
RAIFs do not require licensing by Cyprus Securities and Exchange
Commission (CySEC). They are rather supervised by a licensed
Alternative Investment Fund Manager (AIFM). As a result, setting up
a RAIF involves a minimal timeframe and substantially reduced cost
compared to a licensed AIF, while achieving the same legal
structure.
Umbrella funds with ring-fenced compartments
A RAIF can be set up as an umbrella fund with more than one
investment compartments. Compartments allow the management of
separate asset pools with different investment policies and
investors. A compartment may invest in another compartment of the
same umbrella fund subject to certain restrictions.
