{"concept_id":"ALTSS-REG-037","slug":"eltif","canonical_name":"European Long-Term Investment Fund","acronym":"ELTIF","aliases":["ELTIF","ELTIF 2.0"],"kind":"structure","authority":"regulatory","facets":["VEH","REG"],"domains":["FUND-STRUCTURES","LEGAL-REGULATORY-TAX"],"display_title":"European Long-Term Investment Fund (ELTIF)","search_aliases":["what is an eltif","eltif 2.0 changes","eltif retail investors minimum","eltif eligible assets 55%","eltif vs ltaf","eltif redemptions","evergreen eltif"],"one_sentence_definition":"A European long-term investment fund (ELTIF) is an EU alternative investment fund authorised under Regulation (EU) 2015/760, as amended, that invests mainly in long-term assets, such as unlisted companies, real assets and loans, and may be marketed to retail investors.","plain_english":"ELTIF is an EU-wide product authorisation for long-term private-markets funds. A fund that meets its portfolio and investor-protection rules can be marketed across the EU to professional and, with safeguards, retail investors under one passport. The original 2015 rules attracted few funds; the 2023 reform (ELTIF 2.0) loosened portfolio, investor and redemption rules and made the label more widely used.","jurisdiction":"EU","parent_concepts":["aif"],"child_concepts":[],"related_concepts":["aifmd","aifm","ltaf","semi-liquid-fund","evergreen-fund","raif","ucits","mifid-ii","professional-investor"],"comparison_concepts":[],"not_the_same_as":[{"slug":"ltaf","distinction":"The LTAF is a UK authorised open-ended fund regime for long-term assets; ELTIF is the EU product regime."},{"slug":"ucits","distinction":"UCITS are liquid EU retail funds with strict diversification and eligible-asset rules; ELTIFs are AIFs designed for illiquid long-term assets."},{"slug":"raif","distinction":"A reserved alternative investment fund (RAIF) is a Luxembourg national fund regime; an ELTIF is an EU product authorisation that can be marketed to retail investors across the EU."}],"formula_ids":[],"worked_examples":[],"sections":[{"heading":"Jurisdiction and status","paragraphs":["| Instrument | Content | Status |\n|---|---|---|\n| Regulation (EU) 2015/760 | Creates the ELTIF for EU alternative investment funds (AIFs) investing in long-term assets | Applied from 9 December 2015; in force as amended |\n| Regulation (EU) 2023/606 (ELTIF 2.0) | Revises eligible assets, portfolio limits, retail distribution and redemption rules | Applies from **10 January 2024**; ELTIFs authorised under the earlier rules are deemed compliant until 11 January 2029, or without time limit if they raise no additional capital, and may opt in to the new rules |\n| Delegated Regulation (EU) 2024/2759 (RTS) | Hedging-only derivatives, redemption policy and liquidity management tools, matching of transfer requests, disposal of assets, cost disclosure | In force from 26 October 2024 |","ELTIF rules are in EU regulations and apply directly; they sit on top of [AIFMD](/glossary/aifmd), because an ELTIF is an EU [AIF](/glossary/aif) whose manager must be an authorised EU alternative investment fund manager (AIFM)."]},{"heading":"Portfolio rules under ELTIF 2.0","paragraphs":["| Rule | Requirement |\n|---|---|\n| Eligible investment assets | At least 55% of capital (70% under the original regulation) |\n| Concentration | No more than 20% of capital in instruments issued by, or loans granted to, a single qualifying portfolio undertaking, in a single real asset, or in units of a single ELTIF, EuVECA, EuSEF, UCITS or EU AIF; these limits do not apply to ELTIFs marketed solely to professional investors (Article 13(2) and (7)) |\n| Eligible assets | Include equity and debt of qualifying portfolio undertakings (broadly unlisted companies and listed companies with a market capitalisation of no more than EUR 1.5 billion), loans granted to them, real assets, units of other ELTIFs, European venture capital funds (EuVECAs), European social entrepreneurship funds (EuSEFs), [UCITS](/glossary/ucits) and EU AIFs that invest in eligible assets and have not themselves invested more than 10% of their assets in other collective investment undertakings, certain simple, transparent and standardised securitisations, and European green bonds issued by qualifying portfolio undertakings (Articles 10 and 11) |\n| Derivatives | For hedging only |\n| Borrowing | Cash borrowing up to 50% of NAV for ELTIFs that can be marketed to retail investors and up to 100% of NAV for ELTIFs marketed solely to professional investors; it must serve investment or liquidity purposes, be in the currency of the assets acquired (or hedged), and not run beyond the ELTIF's life (Article 16(1)) |"]},{"heading":"Redemptions and liquidity","paragraphs":["An ELTIF may be closed-ended or, under ELTIF 2.0 and the RTS, offer redemptions subject to a redemption policy, minimum holding period, liquidity management tools and a share of liquid assets consistent with the redemption terms. It may also match transfer requests between exiting and incoming investors. These features allow [evergreen](/glossary/evergreen-fund) and [semi-liquid](/glossary/semi-liquid-fund) ELTIFs as well as traditional closed-ended ones."]},{"heading":"Retail distribution","paragraphs":["ELTIF 2.0 removed the original regime's EUR 10,000 minimum investment and the cap on the share of a small retail investor's portfolio that could be invested in ELTIFs. Retail distribution remains subject to a suitability assessment under [MiFID II](/glossary/mifid-ii) and to the ELTIF's own disclosure requirements. ELTIFs marketed only to [professional investors](/glossary/professional-investor) face fewer constraints."]},{"heading":"How managers and investors use ELTIFs","paragraphs":["Managers use the ELTIF to reach European wealth-management and retail channels with private equity, private credit, infrastructure and real estate strategies under one EU passport, often through feeder or semi-liquid structures. ELTIF is a regulatory product status, not a legal form: the fund itself takes a national form, such as a Luxembourg investment company with variable capital (SICAV) or [special limited partnership (SCSp)](/glossary/scsp). The closest UK equivalent is the [Long-Term Asset Fund (LTAF)](/glossary/ltaf)."]}],"classification_rules":[],"calculation_rules":[],"common_mistakes":["Applying the original 70% eligible-asset rule. ELTIF 2.0 requires at least 55%.","Assuming all ELTIFs are closed-ended. ELTIF 2.0 and the RTS allow redemptions under conditions.","Treating ELTIF as a legal form of company or partnership.","Quoting the old EUR 10,000 retail minimum."],"edge_cases":["ELTIFs authorised under the rules applicable before 10 January 2024 are deemed compliant until 11 January 2029, and without time limit if they raise no additional capital; they may opt in to the new rules by notifying their competent authority.","An ELTIF can invest in other funds, including other ELTIFs, if those funds invest in eligible assets and have not themselves invested more than 10% of their assets in other collective investment undertakings (a condition that does not apply to feeder ELTIFs)."],"external_standard_mappings":[],"source_ids":["SRC-EU-AIFMD-2011-61","SRC-EU-ELTIF-2015-760","SRC-EU-ELTIF-RTS-2024-2759","SRC-EU-ELTIF2-2023-606","SRC-EU-MIFID2-2014-65","SRC-UK-FCA-COLL-15-LTAF"],"citations":[{"source_id":"SRC-EU-ELTIF-2015-760","pinpoint":"Regulation (EU) 2015/760, consolidated text of 2024-01-10, Arts. 5(2), 6(1)(b), 13(1)–(2), 16(1)(a)–(d), 30(1); original text Arts. 13(1), 30(3)","supports":"ELTIF label for EU AIFs managed by an authorised EU AIFM; 55% eligible assets and 20% limits; borrowing limits; retail suitability; original 70% rule and EUR 10,000 / 10% retail limits","source":{"source_id":"SRC-EU-ELTIF-2015-760","title":"Regulation (EU) 2015/760 on European long-term investment funds (ELTIF Regulation)","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 123, 19.5.2015","document_type":"regulation","url":"https://eur-lex.europa.eu/eli/reg/2015/760/oj/eng","year":2015,"publication_date":"Adopted 29 April 2015; applied from 9 December 2015","jurisdiction":"EU","status":"In force as amended by Regulation (EU) 2023/606","last_verified":"2026-10-01"}},{"source_id":"SRC-EU-ELTIF2-2023-606","pinpoint":"Regulation (EU) 2023/606, Art. 1(8) (new Arts. 13(1)-(2), 16(1)), Art. 1(20) (new Art. 30), Art. 2; recital 47","supports":"55% eligible assets; 20% limits; borrowing; retail suitability; removal of EUR 10,000 minimum and 10% cap; applies from 2024-01-10; grandfathering to 2029-01-11 and for ELTIFs raising no new capital; opt-in","source":{"source_id":"SRC-EU-ELTIF2-2023-606","title":"Regulation (EU) 2023/606 amending Regulation (EU) 2015/760 (ELTIF 2.0)","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 80, 20.3.2023","document_type":"regulation","url":"https://eur-lex.europa.eu/eli/reg/2023/606/oj/eng","year":2023,"publication_date":"Adopted 15 March 2023; applies from 10 January 2024","jurisdiction":"EU","status":"In force","last_verified":"2026-10-01"}},{"source_id":"SRC-EU-ELTIF-RTS-2024-2759","pinpoint":"Delegated Regulation (EU) 2024/2759, Arts. 1, 5, 7, 10-13","supports":"Hedging-only derivatives, redemption policy and liquidity tools, matching, disposal, costs; in force 2024-10-26","source":{"source_id":"SRC-EU-ELTIF-RTS-2024-2759","title":"Commission Delegated Regulation (EU) 2024/2759 supplementing Regulation (EU) 2015/760 (ELTIF RTS)","authors":"European Commission","publisher":"Official Journal of the EU, L series, 25.10.2024","document_type":"regulation","url":"https://eur-lex.europa.eu/eli/reg_del/2024/2759/oj/eng","year":2024,"publication_date":"Adopted 19 July 2024; entered into force the day after publication (26 October 2024)","jurisdiction":"EU","status":"In force","last_verified":"2026-10-01"}},{"source_id":"SRC-EU-AIFMD-2011-61","pinpoint":"Directive 2011/61/EU","supports":"ELTIF is an EU AIF managed by an authorised AIFM","source":{"source_id":"SRC-EU-AIFMD-2011-61","title":"Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD)","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 174, 1.7.2011","document_type":"directive","url":"https://eur-lex.europa.eu/eli/dir/2011/61/oj/eng","year":2011,"publication_date":"Adopted 8 June 2011; transposition by 22 July 2013","jurisdiction":"EU","status":"In force; amended by Directive (EU) 2024/927 (AIFMD II)","last_verified":"2026-10-01"}},{"source_id":"SRC-EU-MIFID2-2014-65","pinpoint":"MiFID II","supports":"Suitability framework for retail distribution","source":{"source_id":"SRC-EU-MIFID2-2014-65","title":"Directive 2014/65/EU on markets in financial instruments (MiFID II), Annex II Professional Clients","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 173, 12.6.2014","document_type":"directive","url":"https://eur-lex.europa.eu/eli/dir/2014/65/oj/eng","year":2014,"publication_date":"Adopted 15 May 2014; applied from 3 January 2018 (as extended)","jurisdiction":"EU","status":"In force (amended)","last_verified":"2026-10-01"}},{"source_id":"SRC-UK-FCA-COLL-15-LTAF","pinpoint":"COLL 15.8.12R(2)","supports":"LTAF redemptions no more often than monthly, with a notice period of at least 90 days","source":{"source_id":"SRC-UK-FCA-COLL-15-LTAF","title":"FCA Handbook COLL 15: Long-term asset funds","authors":"Financial Conduct Authority","publisher":"FCA","document_type":"regulation","url":"https://www.handbook.fca.org.uk/handbook/COLL/15/","year":2021,"publication_date":"In force from 15 November 2021; amended since","jurisdiction":"UK","status":"In force","last_verified":"2026-10-01"}}],"faq":[{"q":"Can retail investors buy ELTIFs?","a":"Yes. ELTIFs may be marketed to retail investors across the EU, subject to a MiFID II suitability assessment and ELTIF-specific disclosures. ELTIF 2.0 removed the former EUR 10,000 minimum."},{"q":"What is the difference between an ELTIF and an LTAF?","a":"The ELTIF is an EU-regulated product passportable across the EU; the LTAF is a UK authorised open-ended fund regime for long-term illiquid assets, with redemptions no more often than monthly and a notice period of at least 90 days."}],"seo":{},"first_published":null,"last_reviewed":"2026-10-02","last_modified":"2026-10-02","content_version":"2.0.0","url":"https://altss.com/glossary/eltif","json_url":"https://altss.com/reference/concepts/eltif.json","title":"European Long-Term Investment Fund (ELTIF)","formulas":[],"sources":[{"source_id":"SRC-EU-AIFMD-2011-61","title":"Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD)","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 174, 1.7.2011","document_type":"directive","url":"https://eur-lex.europa.eu/eli/dir/2011/61/oj/eng","year":2011,"publication_date":"Adopted 8 June 2011; transposition by 22 July 2013","jurisdiction":"EU","status":"In force; amended by Directive (EU) 2024/927 (AIFMD II)","last_verified":"2026-10-01"},{"source_id":"SRC-EU-ELTIF-2015-760","title":"Regulation (EU) 2015/760 on European long-term investment funds (ELTIF Regulation)","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 123, 19.5.2015","document_type":"regulation","url":"https://eur-lex.europa.eu/eli/reg/2015/760/oj/eng","year":2015,"publication_date":"Adopted 29 April 2015; applied from 9 December 2015","jurisdiction":"EU","status":"In force as amended by Regulation (EU) 2023/606","last_verified":"2026-10-01"},{"source_id":"SRC-EU-ELTIF-RTS-2024-2759","title":"Commission Delegated Regulation (EU) 2024/2759 supplementing Regulation (EU) 2015/760 (ELTIF RTS)","authors":"European Commission","publisher":"Official Journal of the EU, L series, 25.10.2024","document_type":"regulation","url":"https://eur-lex.europa.eu/eli/reg_del/2024/2759/oj/eng","year":2024,"publication_date":"Adopted 19 July 2024; entered into force the day after publication (26 October 2024)","jurisdiction":"EU","status":"In force","last_verified":"2026-10-01"},{"source_id":"SRC-EU-ELTIF2-2023-606","title":"Regulation (EU) 2023/606 amending Regulation (EU) 2015/760 (ELTIF 2.0)","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 80, 20.3.2023","document_type":"regulation","url":"https://eur-lex.europa.eu/eli/reg/2023/606/oj/eng","year":2023,"publication_date":"Adopted 15 March 2023; applies from 10 January 2024","jurisdiction":"EU","status":"In force","last_verified":"2026-10-01"},{"source_id":"SRC-EU-MIFID2-2014-65","title":"Directive 2014/65/EU on markets in financial instruments (MiFID II), Annex II Professional Clients","authors":"European Parliament and Council","publisher":"Official Journal of the EU, L 173, 12.6.2014","document_type":"directive","url":"https://eur-lex.europa.eu/eli/dir/2014/65/oj/eng","year":2014,"publication_date":"Adopted 15 May 2014; applied from 3 January 2018 (as extended)","jurisdiction":"EU","status":"In force (amended)","last_verified":"2026-10-01"},{"source_id":"SRC-UK-FCA-COLL-15-LTAF","title":"FCA Handbook COLL 15: Long-term asset funds","authors":"Financial Conduct Authority","publisher":"FCA","document_type":"regulation","url":"https://www.handbook.fca.org.uk/handbook/COLL/15/","year":2021,"publication_date":"In force from 15 November 2021; amended since","jurisdiction":"UK","status":"In force","last_verified":"2026-10-01"}]}