European Long Term Investment Funds, an exciting new opportunity for Luxembourg
On 10 March 2015, the EU has finalised two and a half years of intense work on an important new EU Regulation that will create a new investment vehicle called European Long Term Investment Funds (ELTIFs).
The Regulation is one element of a far-reaching political agenda that is trying to realise the European ambitions for a new era of growth and for building a mutually beneficial cooperation between the real economy and the financial markets.
A number of lawyers at Linklaters in Luxembourg have been actively involved in preparing the ground for ELTIFs, for example, representing the Luxembourg fund industry throughout the European law-making process, and are currently working with the Luxembourg authorities and stakeholders on how to best position Luxembourg for the going-live of ELTIF, to enhance the Luxembourg “tool-box” and to allow Luxembourg to become an attractive European hub for ELTIF structures.
Silke Bernard, Partner in the Luxembourg Investment Management Group says: “The ELTIF Regulation creates an exciting new framework to channel private money into the real economy. There is likely to be a lot of interest from retail investors for social and responsible investments such as infrastructure, schools or hospitals, especially given the funding gap. One of the most exciting features of the ELTIF Regulation is definitely the marketing passport which – for the first time in the European alternative investment funds sphere - grants ELTIF managers access to certain categories of retail investors across the European Union.”
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