The EU’s Long-Term Investment Fund framework, extensively redesigned to remove overly strict rules on eligible investments, diversification, and access by retail investors is expected to become a sought-after fund structure for providing long-term investment opportunities to retail and professional investors via a single passport across the Union.
The new ELTIF 2.0 Regulation, fully applicable since January 2024, aims to boost long term investments in the real economy, such as energy and infrastructure projects, by significantly expanding the range of ELTIF eligible investments (notably, by including “real assets”), increasing leverage limits, relaxing the rules on investment diversification, allowing fund of funds and master-feeder structures, providing redemption options, and making ELTIFs accessible to a much broader set of investors by removing minimum investment limits.
An article authored by Stefanos Sofroniou, Senior Associate at Elias Neocleous & Co LLC, and recently published on Mondaq, provides a comprehensive overview of this new framework and its considerable appeal to both fund managers and investors, particularly for setting up such funds in Cyprus as well.
For more information, please reach out to Stefanos or your usual contact at our firm.
