European Long-Term Investment Funds (ELTIFs) | Framework
Launched in 2015, European Long-Term Investment Funds (“ELTIFs”) were created as part of the Capital Markets Union (“CMU”) to boost European long-term investments in the real economy. They are key vehicles 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.
ELTIF Regulation | Update
On 10 January 2024, ELTIF 2.0 entered into application. This new regime introduces:
- relaxed regulations for ELTIFs distributed solely to professional investors;
- lighter requirements for retail investors while maintaining safeguards;
- a broader scope of eligible investments; and
- fund-of-funds structures.
On 25 October 2024, the long-awaited final version of the ELTIF regulatory technical standards (“RTS”) have come to complete this new ELTIF framework.
The RTS supplement Regulation (EU) 2023/2869 of 13 December 2023 and specify in particular the requirements for an ELTIF’s redemption policy and liquidity management tools.
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"Governments worldwide are looking to mobilise private capital to help drive an economic rebound from the downturn of the past couple of years, as well as, on a longer time horizon, to join the financial effort required for a transition to a decarbonised economy and society. If the new ELTIF framework is right, it can help investors contribute significantly to achieving these two closely linked goals."
Silke Bernard
Investment Funds Partner
