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 Regulation, 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 entered into force in early 2024.
The Irish ELTIF offering permits asset managers to house
long-term investments in a range of legal structures which benefit
from the existing tax treatment available to Irish-domiciled
regulated funds and which also benefits 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 are 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).
To read the full guide click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.