European long-term investment funds (ELTIFs) are the
only type of funds dedicated to long-term investments that can be
distributed across borders in the EU to both professional and
retail investors.
The revised ELTIF Regulation¹, commonly referred to as
"ELTIF 2.0", redesigns the EU regulatory framework to
make ELTIFs more attractive by removing a number of existing
regulatory obstacles and will enter into force in early 2024.
The Irish ELTIF offering will permit asset managers to house
long-term investments in a range of legal structures which will
benefit from the existing tax treatment available to
Irish-domiciled regulated funds and which will also benefit from a
similar supervisory framework to that afforded to Irish-domiciled
qualifying investor funds. The Irish ELTIF is expected to
facilitate investment by both professional and retail investors in
private assets and the raising and channelling of capital towards
long term investments in the real economy.
The Irish ELTIF is an EU alternative investment fund which, to
operate, must obtain a certificate of authorisation from the
Central Bank of Ireland (Central Bank) under both
applicable Irish investment funds legislation and the ELTIF
Regulation. Thereafter, it is subject to the regulation and
supervision of the Central Bank.
Irish ELTIFs will be available to both retail investors and
professional investors provided that where an ELTIF will be
marketed to retail investors, specific requirements as outlined
below must be complied with. Only those investors who meet the
MiFID II "professional client" criteria will constitute
"professional investors" under the ELTIF regime
(Professional Investors). Investors who do not
meet the criteria applicable to Professional Investors constitute
retail investors (Retail Investors).
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