On December 10, 2014, the Council of the European Union announced that it approved an agreement reached with the European Parliament on a new regulation that would increase the capital available for long-term investments into the EU economy, by creating a new form of fund vehicle, the EU Long Term Investment Fund (“ELTIF”). ELTIFs are expected to provide investors with stable long term returns, due to the asset classes that would be invested into, and will be subject to distinctive additional rules, requiring them for example to invest at least 70% of their capital in clearly defined categories of assets. Only alternative investment funds managed by alternative investment fund managers would be able to market themselves as ELTIFs. The regulation will be adopted by the Council at an upcoming meeting without any further discussion, and once the text of the regulation is finalized in all EU languages.
The press release and final text of the regulation are available at: