Gathering of ELTIF managers concludes that market integration and removal of cross-border barriers are key to scaling long-term investments

ELTIF

EFAMA event brought together over 20 leading asset management firms to discuss implementation of ELTIF across EU and barriers to distribution

Last week, EFAMA hosted around 40 ELTIF managers, policymakers from the European Commission, the French Treasury, the AMF, and other industry stakeholders for its second dedicated, industry-led conference on the European Long-Term Investment Fund (ELTIF). The event provided a unique opportunity to bring together key stakeholders to share experiences and discuss the operational and distribution challenges facing ELTIFs.

Participants generally agreed that ELTIF 2.0 has revitalised the market with strong growth in launches. Throughout the discussion, they stressed the need to remove remaining cross-border distribution barriers and national measures that hinder market access. This includes:

Greater consistency by national supervisors of existing rules around liquidity management tools and valuation practices to improve the scalability of ELTIFs.
Enhancing the use of tax incentives and investor education as a driver for retail participation in long-term investments.
Boosting product recognition and global growth through regulatory equivalence frameworks and education on ELTIFs in non-EU countries.

Discussions clearly showed that ELTIF is a growing market that now requires a truly integrated EU framework.

Tanguy van de Werve, Director General at EFAMA, said: “We were delighted to bring together asset managers and policymakers for the second EFAMA ELTIF Forum, hosted by our corporate member BNP Paribas Asset Management in Paris. Discussions highlighted the ELTIF market’s growth potential and the need for a truly integrated EU framework, particularly for cross-border distribution. The priority is now to address operational challenges through more consistent application of existing rules across national competent authorities, rather than introducing additional rules or Q&As. EFAMA strongly believes in ELTIFs’ potential to boost investment in the real economy and remains committed to supporting stakeholders as the framework evolves. ''

Stefan Staedter, Partner at Arendt & Medernach, said: “ELTIFs are no longer an experiment. The real challenge now is making them work efficiently at scale. Based on several discussions with ELTIF stakeholders, it is my understanding that the conversation is increasingly moving from product eligibility to distribution, liquidity and operational readiness. I am of the opinion that the legal and regulatory framework should provide strong principles and investor protection, without designing every operational answer for the market.”

Martin Parkes, Chair of EFAMA’s Fund Regulation Standing Committee and Co-Head of EU Public Policy at BlackRock, said: “The latest figures show industry has cracked the challenge of structuring ELTIFs. The focus is now on facilitating distribution and driving further market integration, with success measured by expanding access to retail and mass affluent investors.”

Antoine de la Guéronnière, Vice-Chair of EFAMA Fund Regulation Standing Committee and Senior Policy Officer, Head of Internal Governance at BNP Paribas Asset Management said: “UCITS became a global brand through years of practical implementation, meeting investors’ goals and leveraging regulatory consistency. Since 2023, ELTIFs have achieved the same winning combination, and have enjoyed strong growth as a result. To further accelerate retail and institutional adoption, and to grow their cross-border footprints, ELTIF managers must now focus on investor education, share best practices and continue to contribute to a common interpretation of rules across the EU.”

- ENDS -

Notes to Editors

Find out more about the EFAMA ELTIF Forum here.

Read about EFAMA’s work on ELTIFs here.

For further information, please contact:

Hayley McEwen

Head of communications and membership development

Contact

Hayley McEwen

Communications & Membership Development

We were delighted to bring together asset managers and policymakers for the second EFAMA ELTIF Forum, hosted by our corporate member BNP Paribas Asset Management in Paris. Discussions highlighted the ELTIF market’s growth potential and the need for a truly integrated EU framework, particularly for cross-border distribution. The priority is now to address operational challenges through more consistent application of existing rules across national competent authorities, rather than introducing additional rules or Q&As. EFAMA strongly believes in ELTIFs’ potential to boost investment in the real economy and remains committed to supporting stakeholders as the framework evolves.
(Tanguy van de Werve, Director General at EFAMA)

ELTIFs are no longer an experiment. The real challenge now is making them work efficiently at scale. Based on several discussions with ELTIF stakeholders, it is my understanding that the conversation is increasingly moving from product eligibility to distribution, liquidity and operational readiness. I am of the opinion that the legal and regulatory framework should provide strong principles and investor protection, without designing every operational answer for the market.
(Stefan Staedter, Partner at Arendt & Medernach)

The latest figures show industry has cracked the challenge of structuring ELTIFs. The focus is now on facilitating distribution and driving further market integration, with success measured by expanding access to retail and mass affluent investors.
(Martin Parkes, Chair of EFAMA’s Fund Regulation Standing Committee and Co-Head of EU Public Policy at BlackRock)

UCITS became a global brand through years of practical implementation, meeting investors’ goals and leveraging regulatory consistency. Since 2023, ELTIFs have achieved the same winning combination, and have enjoyed strong growth as a result. To further accelerate retail and institutional adoption, and to grow their cross-border footprints, ELTIF managers must now focus on investor education, share best practices and continue to contribute to a common interpretation of rules across the EU.
(Antoine de la Guéronnière, Vice-Chair of EFAMA Fund Regulation Standing Committee and Senior Policy Officer, Head of Internal Governance at BNP Paribas Asset Management)