The European Long-Term Investment Fund (ELTIF) Regulation came into force on 8th June 2015. This new regulation, applicable in all EU Member States as of 9th December 2015, aims to promote long-term investment in the ‘real economy’ and is part of the European Commission’s Action Plan for building a Capital Markets Union.
ELTIFs funds are a category of EU-domiciled alternative investment fund (AIF) and comply with AIFMD requirements, such as the mandatory appointment of a depositary. They benefit from a European passport and label.
- Eligible assets - at least 70% of investments must be composed of non-listed companies, direct holdings of real assets with a value of over EUR 10 million, units of other ELTIFs, European Venture Capital Funds, real estate funds. Assets eligible under UCITS IV can account for no more than 30% of the holdings. ELTIF must be managed by a licensed AIFM.
- Funds have a lock-up period, during which redemptions are not permitted. Full redemption is only possible after this period, however, there are special rules for private investors.
- Funds can be marketed to retail and institutional investors.
- 26 June 2013 - European Commission's ELTIF regulation proposal pubished
- 17 April 2014 - ELTIF regulation voted in the European Parliament plenary session
- 20 April 2015 - ELTIF regulation adopted by the Council
- 29 April 2015 - ELTIF regulation published in the Official Journal of the EU
- 8 June 2015 - ELTIF regulation came into force
- 30 July 2015 - ESMA consultation for the draft regulatory technical standards (RTS) launched
- 22 October 2015 - AMF consultation on loans to ELTIF funds launched
- Q1 2016 - Publication of ESMA's response to the draft RTS expected