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
On 20 March 2023, the long-awaited final text of the ELTIF Regulation was published. ELTIF 2.0 will enter into application on 10 January 2024 but ELTIFs authorised prior to that date will have the possibility to opt in for this new regime now and benefit from:
- 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