Eltif 2.0

Marc Meyers and Sebastiaan Hooghiemstra at Loyens & Loeff highlight the key changes in the draft regulatory technical standards for Eltifs, and see the latest proposal by the European Commission as a “reasonably workable” match for Luxembourg’s market practice.

Creating European Long-Term Investment Funds (Eltifs) as sub-funds under existing alternative investment funds has become a bit easier in Luxembourg. Firms no longer need to fill out a separate CSSF approval form for a new sub-fund when adding an Eltif-class to an existing fund.

Moonfare is offering a golden ticket for the masses with its new app, making private equity investing as simple as ordering a pizza.

Six months after the rollout of Eltif 2.0, the BlackRock private markets team believes this updated wrapper has the potential to become the vehicle of choice for private market investment.

Luxembourg’s financial regulator CSSF plans to make public an online register of European long-term investment funds (Eltifs) later in in July. The register will be updated every month with new registrations.

European ambitions to boost capital flow through increased retail investment, exemplified by the European Long-Term Investment Fund (Eltif), hinge on tax incentives to encourage widespread savings, essential for success.

Some 40 new Eltif funds, enabling European retail investors to put their money in private markets, are understood to be in the pipeline, due to enter the market in the coming months.

Approvals of new European Long-Term Investment Funds in Luxembourg are proceeding smoothly, despite the relays with the adoption of regulatory standards for the second generation of these funds, the CSSF’s supervisor in charge of investment funds, Marco Zwick, told the Alfi conference on Tuesday.

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.