The new European Long-Term Investment Fund (ELTIF) Regulation became applicable on 10 January 2024. Going forward, fund managers will have greater flexibility to make ELTIFs more attractive to end investors, particularly on the retail side, unlocking their potential as a source of financing for the European real economy. To support the success of ‘ELTIF 2.0’, EFAMA and Arendt have published a ‘Frequently Asked Questions’ brochure, which covers the most burning questions asset managers may have regarding the new regime.
Questions covered include:
- What is an ELTIF, what role could they play in the European economy and what are the basic fund rules
- What assets ELTIFs can invest in, portfolio composition requirements, possible fund structures, what is prohibited
- Who can invest in ELTIFs and what are the specific requirements for retail investors
- What are the operating requirements, including redemptions and leverage
- How can ELTIFs be marketed and distributed
- What you need to know about authorisation and registration
- What role will Member States play, including tax treatment
The FAQ also includes the timeline so far and next steps.