Capital Markets Union 2.0

Through various legislative acts over the past 10-15 years, the EU’s push to democratise private markets has transformed how private equity does business, with a heavy helping of technology and fund management tools allowing for what could be a massive influx of smaller-denominated investors. Market participants are feeling their way forward into the new paradigm, some being quite certain that change has now come in the impending form of the new European Long-term Investment Fund.

Quiet optimism in the Luxembourg fund industry suggests that proposed tweaks to the ELTIF regime could unlock this concept’s potential. Wealth managers report growing demand for funds that can give clients exposure to alternative strategies, and new suggested changes could do the trick.