European Long-Term Investment Fund (ELTIF)
The European Long-Term Investment Fund (ELTIF) is an investment vehicle designed for investors who want to make long-term investments into companies and projects. The current ELTIF regime allows all types of investors to invest long-term in European non-listed companies and in long-term assets such as real estate and infrastructure projects. Asset managers have a primary role to play in maximising the pooling and diversification of capital and managing collective investment schemes.
EFAMA believes that the current ELTIF Regulation needs to be amended, to fully unlock its potential and become a product of choice for investors. We advocate for an “evergreen” product with the recalibration of the regulation’s asset eligibility requirements, minimum investment amounts and the establishment of adequate tax incentives.
EFAMA's comments on the European Commission consultation on the review of the EuVECA & EuSEF Regulations
EFAMA publication on ELTIF 2.0 illustrates benefits of new rules
However, European supervisors’ proposed technical standards threaten the success of the new regime
ESMA Consultation Paper on Draft Regulatory Technical Standards under the Revised ELTIF Regulation
EFAMA responds to ESMA's Consultation Paper - From only 20 ELTIFs at the start of the review of the ELTIF Regulation in late 2021 to 95 as of August 2023, the launch of ELTIF products has significantly increased over the last three years, with further market growth expected in the years to come.
We strongly encourage ESMA to uphold the positive momentum of reforms initiated at Level 1 and guarantee that the requirements established by the draft RTS are conducive to the ongoing success of the ELTIF product.
The newly revised ELTIF regime will only be successful if ESMA maintains sufficient flexibility
The European Securities and Markets Authority (ESMA) is currently finalising technical rules on the functioning of European Long-Term Investment Funds (ELTIFs). It will be crucial to the future success of ELTIFs that these rules are supportive and not limiting.
Managing fund liquidity risk in Europe: An AMIC-EFAMA Report
EFAMA Survey: What can the industry do to encourage long-term savings
Raising awareness of the benefits of long-term savings to retail investors will help to rebuild confidence in the European asset management industry, according to EFAMA’s member survey.