Framework

Launched in 2015, European Long-Term Investments Funds (“ELTIFs”) were created as part of the Capital Markets Union (“CMU”) to boost European long-term investments in the real economy. However, only a few years since launch, take up so far has been limited despite their potential to be a key vehicle in the EU’s drive to increase capital flows into investments such as social and infrastructure projects, and real estate and SMEs.

ELTIFs could also help strengthen and support the ambitions of the EU’s CMU, the European green deal and the digital single market. But despite this slow start, we are now seeing a renewed appetite for ELTIFs, particularly in Luxembourg where we are currently advising on a number of ELTIF launches. The long-awaited proposal to review the ELTIF legal framework, expected this month, looks set to accelerate this trend by highlighting the product as an attractive investment opportunity.