Great Fund Insights: The European long-term investment fund (ELTIF) Review

ELTIFs are alternative investment funds dedicated to long-term investments and are the only alternative investment funds that can benefit from an EU marketing passport for both professional and retail investors. The restrictions and burdensome conditions in the initial ELTIF Regulation have hindered their growth despite an increasing interest by sponsors in the retailisation of funds in the EU and a strong appetite from retail investors for alternative investment funds.

The ELTIF 2.0 will be a game-changer in the retailisation of alternatives in the EU because many of the shortcomings of the initial ELTIF regime are now addressed. The new regime will allow alternative asset managers to benefit from unprecedented cross-border access to EU retail investors.

Regulation (EU) 2023/606 (the Amending Regulation) amending the ELTIF Regulation was published in the official journal of the European Union on 20 March 2023. The Amending Regulation will enter into force on the twentieth day following its publication, that is, on 9 April 2023. The Amending Regulation will only apply from 10 January 2024 but there is the possibility to opt-in for the new regime as from 9 April 2023.

This brochure aims at providing a high-level analysis and timeline for the entry into force of the new rules.