Amending the European Long-Term Investment Funds (ELTIFs) Regulation

Briefing 03-04-2023

European long-term investment funds (ELTIFs) invest on a long-term basis in infrastructure projects, real estate, and small and medium-sized enterprises, among other things. While the legislative framework – the ELTIF Regulation – for these funds was adopted six years ago, their market remains small. For this reason, the Commission has proposed amending the ELTIF Regulation to make it more appealing to investors. The key mulled changes involve differentiating between ELTIFs marketed to professional investors and those to which retail investors can have access; removing barriers to retail investor access to ELTIFs; and establishing an optional liquidity window mechanism for redemptions, for cases where investors need to exit early. The interinstitutional negotiations reached agreement on the text in October 2022. That text was then adopted by the Parliament in plenary on 14 February 2023, and thereafter by the Council. The new Regulation applies as of 10 January 2024. Second edition of a briefing originally drafted by Angelos Delivorias. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.