Europe: ELTIF 2.0 Has Been Published

By Philipp Riedl

On 15 March 2023, amendments to the EU Regulation on the European Long-Term Investment Fund (ELTIF) were published in the Official Journal of the European Union.  They will apply from 10 January 2024.

The reform became necessary as only a few ELTIFs have been launched since the Regulation’s original  introduction in 2015. The amendments aim to increase the market attractiveness of the ELTIF, for example through more flexible investment options and the removal of certain distribution obstacles, including the elimination of the minimum investment amount of EUR 10,000. We addressed some of the key amendments in our previous blog.

ELTIFs authorised before 10 January 2024 which comply with the rules applicable before 10 January 2024 will be deemed compliant with the amended ELTIF until 11 January 2029, and even after then if they do not raise additional capital. Over the next few months, ESMA will be developing draft regulatory technical standards (RTS) further specifying the possibility of an early redemption, circumstances in which the life of an ELTIF is considered compatible with the life-cycles of its assets, and details regarding a new ability to match buying and selling investors in secondary transactions.

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