The European Long-Term Investment Fund (Eltif) regime is entering a new phase, driven by a surge in local fund launches and rising domestic demand across Europe. While Luxembourg remains the top hub for cross-border structuring, countries like Germany, France, Italy, and Spain are seeing growing investor interest in locally marketed Eltifs.
Eltifs were introduced in 2015 to channel long-term capital into private markets such as infrastructure, real estate, and private equity. Adoption was slow until Eltif 2.0 took effect in January 2024, easing portfolio rules and removing investor thresholds. That has sparked a wave of new activity.
The latest momentum is captured in Scope Group’s Eltif Market Study 2025. The German-language edition was presented last Thursday, with an English version to follow. Scope’s annual report is the most comprehensive overview of the Eltif market, covering product trends, investor targeting, and growth projections.
80 new funds expected in 2025
Scope forecasts that asset managers will launch at least 80 new Eltifs in 2025, with 28 billion euros in new inflows. By 2027, total assets under management (AUM) could reach 65 to 70 billion euros—nearly triple current levels.
At the end of 2024, there were 133 active Eltifs managing 20.5 billion euros, up 38 percent from a year earlier. Growth is increasingly spread across Europe, as countries build domestic fund pipelines and cultivate local investor interest.
Eltif investment volumes by country
Of the 55 new Eltifs launched in 2024, 37 were domiciled in Luxembourg, 10 in France, and the rest in Germany, Italy, and Ireland. While Luxembourg still accounts for two-thirds of all registrations, the uptick in France-domiciled funds shows that some managers are building for domestic distribution, not just cross-border use.
Germany: investor demand rising fast
Germany stands out for its rapid rise in investor demand. German holdings in Eltifs rose 40 percent in 2024 to 2.8 billion euros across 17 funds. Scope expects Germany to become the largest national investor base in 2025, surpassing Italy.
BaFin only approved its first Eltif for local distribution last year. Until then, German investors accessed Eltifs through Luxembourg-domiciled products. One leading example is KlimaVest, a renewable infrastructure fund launched by Commerz Real in 2020, now managing over 1.5 billion euros and sold through Commerzbank.
The three largest Eltifs are all infrastructure funds: KlimaVest, Meridiam Infrastructure Europe III SLP and GF Infrastructures Durables SLP, accounting for 17 percent of the total market, according to Scope.
France remains the largest Eltif market by volume and is home to more domestic funds. However, only France-domiciled Eltifs can be included in insurance-wrapped investment products, restricting access for foreign funds. France is considering tax reforms that would make Eltifs more attractive to savers through life insurance policies, a key investment channel.
Italy and Spain: steady local growth
Italy still ranks second in Eltif assets, with 3.5 billion euros across 48 funds. Spain’s market grew 38 percent last year to 1.4 billion euros. Both countries benefit from well-developed distribution networks and rising retail appetite for private markets.
Scope found that 98 percent of managers are targeting retail investors in 2025, with 93 percent also focusing on semi-professionals. Institutional demand is growing too: 63 percent of managers now include institutions, up from 48 percent in 2023.
€100,000: the practical threshold
Although Eltif 2.0 removed the official minimum investment requirement, many providers still see 100,000 euro as the level at which Eltifs begin to make sense for portfolio diversification, Scope said. Private banks and fund selectors continue to use this as a suitability benchmark for clients considering semi-liquid alternatives.
Eltifs remain expensive. Scope reports average management fees of 1.9 percent, ranging from 0.9 to 2.9 percent. Retail share classes are the most costly, due to distribution and servicing requirements. Fee pressure is limited, as most managers are still building scale.
As national markets grow, Luxembourg remains the dominant platform for cross-border Eltifs. Its legal framework, servicing infrastructure, and distribution expertise continue to attract managers seeking scale and flexibility. It is also the preferred base for open-architecture Eltif solutions used by private banks across Europe.
Scope projects the number of active Eltifs could reach 600 to 700 by 2028. AUM could grow to 150 billion euros under a baseline scenario, or 200 billion euros under more favorable conditions—if investor demand and national policies stay supportive.