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European long-term investment funds

  • Posted on: 22.08.2015
  • Abbreviation: ELTIF

Website: Link

The Council adopted on 20 April 2015 a regulation aimed at increasing the pool of capital available for long-term investment in the EU economy by creating a new form of fund vehicle. 

European long-term investment funds (ELTIFs), by virtue of the asset classes that they will be allowed to invest in, are expected to provide investors with long-term, stable returns. 

The creation of clearly defined ELTIFs shall help tackle barriers to long-term investment in, for example, infrastructure projects, thereby stimulating employment and economic growth. ELTIFs only focus on alternative investments that fall within a defined category of long-term asset classes whose successful development requires a long-term commitment from investors. 

ELTIFs will be alternative investment funds which are subject to additional rules and requirements. One of the aims is to enable pension funds, insurance companies and professional and retail investors to make investments in assets such as infrastructure or SMEs, but also intangible assets including intellectual property, research and development, etc. - which could potentially have a huge benefit for research performing organistions. But there are also barriers to an adequate exploitation for research and innovation funding.

To read the regulation, follow this link: http://register.consilium.europa.eu/doc/srv?l=EN&f=PE%2097%202014%20INIT