EU Publishes Final Text Of ELTIF Regime

The EU has published its final text for the proposed revision of the European Long-Term Investment Fund ("ELTIF") regime by means of the European Long-Term Investment Funds Regulation.

The ELTIF regime was originally introduced in 2015 to create a product allowing retail access to alternative investment classes including private credit, private equity and infrastructure but has seen only a modest number of launches as a result of several restrictive features of the regime (such as prohibitions on co-investments that did not allow asset managers to include ELTIFs in their private market product lines). It is hoped that the updating of the ELTIF framework will lead to a significant increase of investment into the EU economy at a time when traditional sources of financing are becoming more challenging for businesses to access.