European Long-Term Investment Fund 2.0

In March 2023, the amended European Long-Term Investment Fund ("ELTIF 2.0") regulation was published in the Official Journal of the European Union, with application from January 2024. The ELTIF is an innovative form of EU Alternative Investment Fund ("AIF"), introduced in 2015, which aims to facilitate long-term investment in real assets. Eligible investments include infrastructure, real estate, intellectual property and small and medium sized enterprises.

Key regulatory improvements have been made with an intended renewed interest in the vehicle. These include removing barriers to entry for retail investors and amending restrictive fund rules to increase the uptake of the ELTIF. The European co-legislators expect the enhancements will make the ELTIF 2.0 a more attractive proposition for global asset managers and bring benefits to economic growth, ideally supporting the transition to climate neutrality.