The revised regulation on the European Long Term Investment Fund
(ELTIF) was published in the Official Journal of the EU today and
will in principle apply from 10 January 2024, although an earlier
use of the new regime is possible. The changes include among others
more flexible investment rules, the removal of certain restrictive
thresholds and minimum investment amounts, all of which is expected
to make the ELTIF substantially more attractive as a vehicle for
retail investors interested in alternative assets.
What is the ELTIF ?
The initial version of the ELTIF was established by way of a
European Regulation back in 2015. It was intended to be a mixture
of the UCITS product regime and the AIFMD manager regime, allowing
retail investors access to asset classes such as private equity,
real estate or debt based on a passport regime throughout the EU
and by way of a fund regime that required a prior authorisation by
the national regulator. However, it proved to be a
