In its initial version, the ELTIF regime has not been very successful. As of October 2020, there were only 28 ELTIFs across the EU. EU institutions recognised that the limited success of ELTIFs was mainly due to the overly prescriptive investment rules and complex marketing rules. In 2021, the European Commission (EC) initiated a review of the ELTIF regime with a view to make it more appealing. This process led to the adoption in March 2023 of a regulation amending Regulation (EU) 2015/760 on ELTIFs (the ELTIF Regulation). The new rules which came into force on 10 January 2024 make the ELTIF regime more flexible and attractive. By broadening the scope of eligible assets, allowing funds of funds, relaxing investment limits and borrowing rules, and removing barriers for marketing to retail investors1 , the amending regulation addresses many of the shortcomings of the initial ELTIF Regulation.

Get a comprehensive overview of the new rules by downloading our brochure.