European Long-Term Investment Fund (ELTIF)

The European Long-Term Investment Fund (ELTIF) is an investment vehicle designed for investors who want to make long-term investments into companies and projects. The current ELTIF regime allows all types of investors to invest long-term in European non-listed companies and in long-term assets such as real estate and infrastructure projects. Asset managers have a primary role to play in maximising the pooling and diversification of capital and managing collective investment schemes.

EFAMA believes that the current ELTIF Regulation needs to be amended, to fully unlock its potential and become a product of choice for investors. We advocate for an “evergreen” product with the recalibration of the regulation’s asset eligibility requirements, minimum investment amounts and the establishment of adequate tax incentives.

Related policy positions

Policy Position

ELTIF

24 August 2023

ESMA Consultation Paper on Draft Regulatory Technical Standards under the Revised ELTIF Regulation

EFAMA responds to ESMA's Consultation Paper - From only 20 ELTIFs at the start of the review of the ELTIF Regulation in late 2021 to 95 as of August 2023, the launch of ELTIF products has significantly increased over the last three years, with further market growth expected in the years to come.

We strongly encourage ESMA to uphold the positive momentum of reforms initiated at Level 1 and guarantee that the requirements established by the draft RTS are conducive to the ongoing success of the ELTIF product.

Policy position

EU Fund regulation

ELTIF

25 February 2022

ELTIF review - What is needed to make ELTIF 2.0 successful?

EFAMA strongly supports the Commission's draft proposal amending the ELTIF Regulation where it addresses some of the major obstacles that have undermined the attractiveness of the ELTIF product since inception. The revised legal framework has the potential to transform ELTIF into a product of choice for a larger (retail) investor audience, all while serving the purposes of the Capital Markets Union (CMU). However, some important adjustments remain to be made for the ELTIF regime to reach its full potential as a competitive long-term investment option.

Press Release

EU Fund regulation

ELTIF

25 November 2021

The revised ELTIF – a long-term opportunity for European investors

EFAMA firmly supports the European Commission’s proposal to revise the European Long-Term Investment Fund (ELTIF) Regulation. The revised framework has the potential to transform ELTIF into a product of choice for European investors and to become a cornerstone of the Capital Markets Union.

The newly revised ELTIF regime will only be successful if ESMA maintains sufficient flexibility

The European Securities and Markets Authority (ESMA) is currently finalising technical rules on the functioning of European Long-Term Investment Funds (ELTIFs). It will be crucial to the future success of ELTIFs that these rules are supportive and not limiting.

Press Release

Highway with high walls of stock market figures pointing to a distant horizon where the sun is shining

ELTIF

15 February 2023

New ELTIF 2.0 regulation will facilitate retail investor access to long-term investment opportunities in Europe

Today, the European Parliament voted in favor of amending the European Long-Term Investment Funds (ELTIF) Regulation, following the European Commission’s proposal in November 2021. The revamped regime now has the potential to become an attractive “go-to” fund structure for long-term investments, with particularly beneficial improvements for retail investors.

Publication

picture of a lady wearing glasses and looking pensive

ELTIF

31 January 2023

ELTIF 2.0 - European Long-Term Investment Funds

In the 9th issue of our “3 Questions 2” (3Q2) series, we spoke with Stuart Corrigall, Chair of the EFAMA Fund Regulation Standing Committee and Managing Director at BlackRock, on ELTIF 2.0.

He answers the following questions:

1: What is an ELTIF, and why did the current ELTIF regime need to be revised?
2: What are the major changes the review process introduced?
3: In light of those changes, is ELTIF 2.0 going to be successful?

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Related publications

Publication

ELTIF

18 January 2024

Infographic | ELTIF

The European long-term investment fund (ELTIF) is a regulated pan-European label for alternative
investment funds (AIFs). ELTIFs may invest in a variety of assets and may be marketed to retail
and professional investors under the harmonised passporting regime of the ELTIF Regulation.
ELTIFs are regulated by the ELTIF Regulation (EU) 2023/606 amending (EU) 2015/760 on
European long-term investment funds. The ELTIF Regulation is applicable as of 10 January 2024.

Publication

ELTIF

18 January 2024

FAQ: ELTIF Regulation 2.0

The new European Long-Term Investment Fund (ELTIF) Regulation became applicable on 10 January 2024. Going forward, fund managers will have greater flexibility to make ELTIFs more attractive to end investors, particularly on the retail side, unlocking their potential as a source of financing for the European real economy. To support the success of ‘ELTIF 2.0’, EFAMA and Arendt have published a ‘Frequently Asked Questions’ brochure, which covers the most burning questions asset managers may have regarding the new regime.

Publication

ELTIF

31 January 2023

ELTIF 2.0 - European Long-Term Investment Funds

In the 9th issue of our “3 Questions 2” (3Q2) series, we spoke with Stuart Corrigall, Chair of the EFAMA Fund Regulation Standing Committee and Managing Director at BlackRock, on ELTIF 2.0.

He answers the following questions: