ELTIF II

On 20 March 2023, Regulation (EU) 2023/606 ("ELTIF II") amending the initial ELTIF Regulation (EU) 2015/760 ("ELTIF I) was published in the OJEU.

ELTIF II removes the barriers to the success of European long-term investment funds ("ELTIFs") under ELTIF I. In particular, ELTIF II introduces the following amendments:

• broader scope of eligible assets with the inclusion, for instance, of listed companies with a market capitalization of up to EUR 1.5 billion, FinTech companies, simple, transparent and standardised securitisations ("STS") and green bonds;
• broader definition of what constitutes a "real asset", which is now simply "an asset that has an intrinsic value due to its substance and properties", thus increasing significantly the type of real assets in which an ELTIF can invest;