Cheat sheet: What are ELTIF Funds?

20 February 2016

Factsheet

Long-Term Funds Key Issues

The European Long-Term Investment Fund, or ELTIF, is a new type of collective investment framework allowing investors to put money into companies and projects that need long-term capital. It is aimed at investment fund managers who would be able to offer long-term investment opportunities to institutional and private investors across Europe, e.g. in infrastructure projects.

ELTIFs are designed to increase the amount of non-bank finance available for companies investing in the real economy of the European Union. Action is needed at European level as there is no consistency among the funding vehicles in Member States, where they exist. It is also not always clear whether such funds are really focused on long-term investments such as infrastructure projects. Existing funds can only raise money in one Member State as they are not accepted across national borders. This fragmentation means that the growth of funds is limited.

On 13 November Finance Watch presented its evidence on ELTIFs at the EPP Group hearing in the European Parliament.

See also Long-term investing.

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