European Long Term Investment Funds (ELTIF)
The power to explore new horizonsPrivate markets are becoming more accessible
The need for returns, a regular income and diversification have brought private markets to the forefront, and a major shift is taking place.
This process is accelerating amongst investors globally. Regulations, technology and product innovation are supporting the development of new funds designed around private investor needs.
New investment solutions, like the European Long Term Investment Fund (ELTIF), are being developed to unlock access.
What are ELTIFs?
European Long-Term Investment Funds, or ELTIFs, are a type of collective investment framework allowing investors to put money into companies and projects that need long-term capital. They are designed to increase the amount of non-bank finance available for companies investing in the real economy of the European Union.
At least 70% must be invested in unlisted opportunities such as small and medium sized companies or infrastructure projects.
To get the most out of the investments in these very complex markets, it’s crucial to rely on a trustworthy asset manager with a strong track record.
Benefits for investors
Increased Access
Providing access to private markets investments to a wider audience thanks to low minimum investment thresholds.
Direct Ownership
Actively engaging with private companies gives the opportunity to promote more sustainable business practices and behaviours.
Portfolio Diversification
Investing in small and medium sized companies and projects that are not accessible through public markets provides diversification benefits.
Long-term Returns
ELTIFs provide investors with attractive returns from complex investment opportunities by deploying appropriate skills.
Regulated Structure
ELTIFs can be offered only by an authorised manager under the EU’s Alternative Investment Fund Managers Directive (AIFMD) and is subject to its rules
Sustainability
It could help in meeting sustainability investment goals - i.e. SFDR Art. 8* ELTIF.
The views shared are those of Schroders Capital and may not lead to favourable investment outcomes
ELTIFs at Schroders
We launched our first ELTIF, Schroders Capital Private Equity ELTIF 2023, in February 2023. With a minimum subscription of EUR10,000, the fund offers individual investors access to small and mid-market private equity buyout and growth investments primarily in Europe. Please note that this fund is now closed and unavailable to new investors.
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