The European Union on Monday published the text of its updated regulation on long-term private investment funds, known as Eltif 2.0, in its Official Journal, clearing the final hurdle before its implementation from January next year.
The publication was expected following the adoption by the European Parliament in February. Luxembourg, as a leading investment funds hub in Europe, is keen to develop itself as an international hub for this new type of investment funds which will open up alternatives and private equity also to non-institutional investors.
The Eltif update has been published as Regulation (EU) 2023/606. Regulatory technical standards for Eltifs are currently under discussion and are expected to be published around the summer.
As a new type of investment fund, Eltifs are expected to become a major addition to funds offered via Luxembourg. Under a Luxembourg passport, firms will be able to offer Eltifs to investors in 30 countries in the European economic area. Luxembourg also is studying ways to offer these funds to “retail-plus” investors in other parts of the world, in particular Asia and South America.