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Transforming ELTIFs into a product of choice for investors

EU Fund regulation | ELTIF
26 January 2021 | Press Release
EU Fund regulation

The European Fund and Asset Management Association (EFAMA) today shared its recommendations to the European Commission on measures to be taken to improve the European Long-Term Investment Fund (ELTIF) regime.


Very few ELTIFs were launched by professional investment managers since the Regulation became applicable in December 2015. Only around 28 ELTIFs have been established, with a low asset base (below 2 billion euros). From that perspective, the ELTIF Regulation has failed to meet its objective of boosting European long-term investments in the real economy.


However, EFAMA believes that the ELTIF regime if properly adapted can become a powerful tool to deliver on some of the Capital Markets Unions (CMU) objectives and represent an attractive vehicle for investors in a low-for-long interest rate environment.


EFAMA recommends the following key changes to the current regime:


  • Turn ELTIF into an open-end structure alongside the existing closed-end one, by removing current limitations to its life cycle and by introducing appropriate redemption terms, and include adequate liquidity management tools.

  • Broaden the scope of the current eligible asset provision to include other types of funds, besides ELTIFs, EuVECAs and EuSEFs, as well as non-listed financial start-up companies.

  • Lower the current 10 million threshold for investments in real assets, thereby broadening choices for managers to consider smaller investment projects.

  • Remove quantitative limits (i.e., 500.000, 10% of the investable portfolio and a minimum of 10.000) and allow investments into ELTIFs as from 1.000 to reduce supply-side constraints.

  • Guarantee the tax neutrality of the ELTIF structure to make it a worthwhile investment tool.

Commenting on the recommended changes, Federico Cupelli, senior regulatory policy adviser at EFAMA, said: Profound changes are necessary to make ELTIFs an EU product of choice and help deliver on some of the CMUs objectives. These include promoting more participation in less-liquid, real asset markets, as well as allowing both institutions and individuals to invest a part of their wealth over the long-term and diversify their exposure into private markets. In this regard, we advocate a recalibration of the Regulations asset eligibility requirements, minimum investment amounts and adequate tax incentives.


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For further information, please contact:

Brandon Bhatti
Hume Brophy

Daniela Haiduc
Head of Communications
+32-2-473 562 936

Notes to editors:

About the European Fund and Asset Management Association (EFAMA)
EFAMA, the voice of the European investment management industry, represents 28 member associations, 57 corporate members and 23 Associate Members. At end Q3 2020, total net assets of European investment funds reached EUR 17.6 trillion. These assets were managed by more than 34,200 UCITS (Undertakings forCollective Investments in Transferable Securities) and almost 29,400 AIFs (Alternative Investment Funds). At the end of Q2 2020, asset managed by European asset managers as investment funds and discretionary mandates amounted to an estimated EUR 24.9 trillion. More information available at



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