Frequently Asked Questions

A European Long-Term Investment Fund (ELTIF) is an EU-regulated investment vehicle designed to support long-term investments in the European economy. ELTIFs channel capital into projects and companies requiring sustained financial support, such as infrastructure (e.g., renewable energy projects), private equity (investments in private companies), and real estate. They are accessible to both retail and institutional investors, offering a unique opportunity to diversify portfolios while contributing to economic growth.

ELTIFs aim to boost the EU's real economy by directing capital to long-term projects and companies. Their key purposes include: channeling capital to support infrastructure, unlisted companies, and SMEs; promoting EU goals for smart, sustainable, and inclusive growth; providing investment opportunities with potential for steady income and capital growth; complementing bank financing as an alternative funding source; and mobilizing funds from both EU and non-EU investors.

ELTIFs differ from other investment funds such as UCITS and other AIFs in several aspects: They focus on long-term, illiquid assets like infrastructure, private equity, and real estate, while UCITS focus on liquid, transferable securities. ELTIFs are governed by the ELTIF Regulation and AIFMD, are accessible to both retail and professional investors (with suitability tests for retail), and are typically closed-ended funds with limited redemption options.

ELTIF 2.0 refers to the amended ELTIF Regulation (EU 2023/606), effective from January 10, 2024. Key changes include: expanded eligible assets (including UCITS, EU AIFs, and certain securitizations), increased diversification limits from 10% to 20% per asset, removal of the €10,000 minimum investment for retail investors, possibility of limited redemptions, increased borrowing limits (50% for retail, 100% for professional), and removal of minimum value requirements for real assets.