We at Invest Europe applauds the agreement found by EU policymakers on the revision of the European Long Term Investment Regulation (ELTIF).
The revision will make it easier for long-term fund managers to set up ELTIF structures and hence offer them a safe and credible marketing label to offer their products to non-professional clients across the EU. This will be at the benefit of both the retail investors looking to invest capital in long-term projects and the companies that need such capital to grow and contribute to the sustainable and digital transitions” says Eric de Montgolfier, CEO of Invest Europe “The agreement today is a momentous step towards the democratisation of all long-term asset classes, and of private equity in particular.”
Among the most fundamental changes introduced as part of the deal reached yesterday are the opening of ELTIF to fund-of-fund structures as well as the ability of ELTIFs to invest in fintechs. The final compromise also streamlines and simplifies the conditions under which retail investors can access these funds. It introduces a series of changes, on liquidity or borrowing, which will give additional flexibility for ELTIF managers to operate their funds. Thanks to a clarification of the conflict-of-interest rules, private equity, venture capital and infrastructure fund managers will also be able to co-invest alongside their funds.
Martin Bresson, Invest Europe Director of Public Affairs, adds “The ELTIF review is a testimony of how a, so far, underused voluntary passport can be improved thanks to collaboration between lawmakers and the industry. We’ve been extremely pleased with how constructive discussions have been with the European Commission, European Parliament’s Rapporteur Michiel Hoogeveen and the French and Czech Presidency of the Council and we are very impressed with the capacity for making the right compromises to improve the functioning of the passport while maintaining high standards of investor protection.