Carne was awarded the first European Long-Term Investment Funds (ELTIF) licence by the CSSF in Luxembourg in 2019. The licence allows Carne to offer AIFM services to ELTIFs.

What is an ELTIF?

The ELTIF was created to increase the amount of non-bank finance available for companies investing in the real economy and infrastructure of the European Union.  The ELTIF is a type of Alternative Investment Funds (AIF) enabling investment managers of private equity, infrastructure and real estate funds to offer long-term, usually closed-ended, products to the European investors. To benefit from this cross-border passport ELTIFs have to meet rules designed to protect both investors and the companies and projects they invest in.

An ELTIF must invest at least 70% of its assets in unlisted companies needing long-term capital, such as infrastructure, notably in network industries including transport and energy, but also social infrastructure (hospitals, schools and social housing). ELTIFs can also invest in certain listed small and medium sized enterprises (SMEs), real assets that need long-term capital to develop them, intellectual property and other intangible assets, as well as European Venture Capital Funds (EuVECA), and European Social Entrepreneurship Funds (EuSEF).

Because of the long-term nature of the assets they will invest in, it may take ELTIFs a number of years to be fully invested. The rules are designed not to force ELTIFs to invest in assets that are not suitable just to meet a deadline. Therefore, ELTIFs have up to five years to invest at least 70% of the money. ELTIFs may invest up to 30% in other assets providing flexibility regarding when to sell assets or replace them with new ones.

ELTIFs can be invested by all types of institutional and professional investors and also by retail investors, who may invest up to 10% of their assets in ELTIFS.

Next Steps

To find out more about the services and solutions we can offer you through our ELTIF licence talk to your Carne Relationship Manager or contact Des Fullam.

Ireland

Des Fullam
Group Chief Product & Regulatory Officer
des.fullam@carnegroup.com