Your Guide to European Long-Term Investment Funds (ELTIFs)

May 31, 2016

Strengthening the European economy through sustainable growth and boosting long-term investment is currently at the forefront of the European Union’s (“EU”) economic agenda. This focus on sustainable growth is the key driver behind a new European fund regime, the European long-term investment fund (“ELTIF”). The aim of the ELTIF is to increase the pool of capital available for long-term investment in Europe and in particular for infrastructure projects, small and medium sized enterprises, research and development and education.

The ELTIF regime was established pursuant to the regulation on European long-term investment funds (Regulation (EU) 2015/760) (the “Regulations”)), which was published in the Official Journal of the EU on 19 May 2015. It has been possible to launch an ELTIF since 9 December 2015, but what exactly is it? Who can establish an ELTIF? How can it be structured? To whom can it be sold? What constitutes a “long-term” investment and are any limitations imposed on promoters using an ELTIF?

This OnPoint aims to address these questions and serve as your introductory guide to understanding an ELTIF.

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