European Long-Term Investment Funds (ELTIFs) | framework

Launched in 2015, European Long-Term Investments Funds (“ELTIFs”) were created as part of the Capital Market Union (“CMU”) to boost European long-term investments in the real economy. They are a key vehicle in the EU’s drive to increase capital flows into investments such as social and infrastructure projects, real estate and SMEs. ELTIFs have the potential to become an important tool in supporting both the EU’s ambitious Green Deal agenda and the digital single market.

ELTIFs Regulation | update

In November 2022, following a 12-month review of the ELTIF legal framework, a regulatory relaxation announcement opened the door to all retail investors. Offering a wider investment scope and more flexible fund structures, ELTIFs look set to shine again as investors continue to seek long-term opportunities with clear sustainability credentials.

With the political agreement finally reached, some of the most remarkable ELTIF 2.0 achievements are:

• Relaxed regulations for ELTIF funds distributed solely to professional investors
• Lighter retail investor requirements while maintaining safeguards
• Broader scope of eligible investments 
• Fund-of-funds structures introduced

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