News and developments
The revamped EU ELTIF fund structure opens new opportunities for fund managers and investors
is acclaimed as a modern attractive framework for fund managers to provide long-term investment opportunities on a cross border basis to professional and retail investors. The extensive changes introduced by the EU’s ELTIF 2.0 Regulation (2023/606/EU) address the deficiencies that afflicted the original ELTIF 1.0 framework with respect to overly strict rules on eligible investments, diversification and access by retail investors, making the revised framework a much more appealing vehicle for managers and investors alike.
Designed to raise and channel capital to long-term investments in the real economy, this new framework focuses on sectors such as energy and transport infrastructure, schools, hospitals, and green and digital transition projects. It lays down uniform rules on the authorization, investment policies and operating conditions of EU AIFs managed by EU alternative investment fund managers (EU AIFMs) that aim to be marketed in the Union as ELTIFs.
The application for authorization is made to the competent authority of the interested AIF, which in Cyprus is the Cyprus Securities and Exchange Commission. The license is granted provided that the AIF meets the requirements of the ELTIF Regulation and the competent authority approves the EU AIFM, the fund rules or instruments of incorporation and the depositary.
Author: Stefanos Sofroniou, Senior Associate at Elias Neocleous & Co LLC
- A much broader range of eligible investments
- Greater Leverage
- Investment rules and diversification
- Redemption policy and secondary markets
- Improved investor access
Author: Stefanos Sofroniou, Senior Associate at Elias Neocleous & Co LLC