Within the framework of the Europe 2020 Strategy to put the EU back on the path to a “smart, sustainable and inclusive economy”, supporting long-term investments was identified as a key element to reach such objective.

In this context, in June 2013, the EU Commission (Commission) submitted a proposal for a regulation on EU Long-term Investment Funds (ELTIF Regulation) to boost long-term investment in the EU economy through the introduction of a new type of collective investment vehicle designed to provide private capital for the financing of long-term projects such as infrastructure, private equity or real estate projects.

A provisional agreement on ELTIF Regulation was reached in trialogue in November 2014 (i.e. by representatives of the European Parliament, the Council of the EU and the Commission) and the text was finally adopted by the European Parliament during its plenary session of 10 March 2015.

The Council of the EU, which had already confirmed its agreement with the European Parliament in December 2014, has now endorsed the regulation at its meeting of 20 April 2015 without further discussion.

The ELTIF Regulation shall enter into force 20 days after its publication in the Official Journal of the European Union which is expected in May-June 2015. It shall apply six months after its entry into force. The European Securities and Markets Authority (ESMA) shall elaborate and submit draft regulatory technical standards to the Commission within three months after the entry into force of the ELTIF Regulation.

As Alain Lamassoure, Parliament rapporteur for the ELTIF Regulation, has emphasised, this "efficient new tool" will not only give a major boost to financing long-term investment, but will also help to build the capital market union.

The ELTIF Regulation complements the European venture capital funds (EuVECA) and the European social entrepreneurship funds (EuSEF) regulations which have been applicable in all Member States since July 2013.

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Contacts

Yves Lacroix

Partner

Private Equity & Real Estate

Francis Kass

Partner

Investment Management - OLD

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