ALTERNATIVE FUNDS LANDSCAPE AND THE NEW CAPITAL ECONOMY

The global investment landscape is entering a new cycle. After a decade of low interest rates and abundant liquidity, capital markets are adjusting to structurally higher financing costs, slower exit environments and greater scrutiny of investment performance. In this environment, alternative investment funds (AIFs) are evolving from a diversification tool into a key financing mechanism for the real economy — supporting corporate growth, infrastructure development and innovation beyond traditional banking channels. What began primarily as private equity has expanded into a broad private markets ecosystem including venture capital, private credit, infrastructure and real assets, with assets under management expected to continue growing as institutional investors and private wealth increase their allocations.

Europe sits at the centre of this transformation. A sophisticated regulatory framework, an expanding investor base and increasing demand for cross-border structures are strengthening the region’s role in global private markets. Structural shifts — such as pension fund allocation changes, the rise of semi-liquid investment vehicles and the rapid growth of private credit — are reshaping how capital is raised and deployed. At the same time, regulatory developments such as AIFMD II and technological innovation, including AI-driven portfolio management and tokenisation, are redefining governance, distribution and operational models across the European alternative investment ecosystem.

The 12th International Funds Summit 2026 will take place in Limassol, Cyprus, bringing together a distinguished group of fund managers, institutional investors, policymakers and industry leaders from across Europe, the Middle East and international markets. Organised by the Cyprus Investment Funds Association (CIFA) and IMH, the Summit continues to serve as the leading annual forum for the funds and asset management industry in the region, providing in-depth analysis of market developments, regulatory evolution and emerging investment opportunities within the alternative funds space.