Reforms point to tangible success, however adoption by mass retail investors still remains in an early phase

Since the new European Long-Term Investment Fund (ELTIF) Regulation became applicable in 2024, numerous regulatory technical standards have been published by the European Commission. In light of these important additions, EFAMA and Arendt have updated their ‘Frequently Asked Questions’ publication, intended for asset managers and investors alike. This includes important clarifications on portfolio composition, allowable assets, redemptions, liquidity management, use of ELTIFs in pension and insurance products, and more. 

As Europe tries to boost investment, particularly in EU companies, infrastructure, defense etc., creating a strong private asset product that is attractive to both investors and manufacturers is key. Since the ELTIF 2.0 reforms came into full effect, the number of ELTIFs has doubled, with increases particularly in Luxembourg, France, Ireland, Italy and Spain, according to Scope research. We have seen 56 asset management firms launching an ELTIF for the first time.  ELTIF assets under management have increased to around EUR 34 billion at the end of 2025, up by 55% compared to the previous year[1]. 

High net worth individuals, alongside banks and insurance companies, have been the main ELTIF clients to date. Partnerships between asset managers and traditional distributors are being redesigned to gradually deliver ELTIFs to a larger mass retail investor base, mindful of risk profile and appropriate disclosures. To ultimately enhance the product’s retail appeal, national tax incentives will remain critical.

Federico Cupelli, Deputy Director at EFAMA, commented: “The new ELTIF regime continues to deliver, both by widening the funding base for the European economy, as well as opening the way for greater retail investor participation. EFAMA hopes to contribute to this progress with the publication of our FAQ, as well as an ELTIF Forum we host annually for asset managers and policymakers. To really boost success, tax-friendly wrappers in certain jurisdictions have been a good development but local distribution channels still need to fully adapt.”

Stefan Staedter, partner at Arendt & Medernach, added: “With the publication of the Level 2 rules for ELTIFs, asset managers faced an increased need for technical clarity. This updated edition of the ‘Frequently Asked Questions’, developed in close collaboration with EFAMA, delivers a comprehensive roadmap for the re-shaped regulatory environment. It aims to give the industry the practical certainty required to fully embrace the potential of the new regime and further scale the distribution of private funds to retail investors across and beyond the European Union.”

[1] Source: Scope Fund Analysis Report of 16 April 2026. 

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Notes to Editors

Find out more about our work on ELTIF here.

For further information, please contact:

Hayley McEwen

Head of communications and membership development