What is an ELTIF?

The European Long-Term Investment Fund (ELTIF) is a special type of Alternative Investment Fund (AIF) that can be distributed via passporting to both professional and retail investors within the EU or EEA. ELTIFs must invest at least 70% of their capital in well-defined categories of eligible investment assets: private equity, private debt (debt financing) or long-term infrastructure projects. This gives infrastructure projects, unlisted companies or listed small and medium-sized enterprises (SMEs) the opportunity to obtain alternative financing that is independent of banks.

ELTIFs have a fixed term during which investors cannot request redemption of their units. There are, however, some exceptions.