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.
Despite uncertainties around the ELTIF 2.0 regulatory technical standards which are not yet in place, we see a considerable appetite for the updated ELTIF framework, and the high number of projects in the pipeline predicts a bright future for European ELTIFs.