European Union: ELTIF 2.0 regime enters into force

The regulatory reform of European long-term investment funds enters into force on 10 January 2024, following its approval by the European Parliament and the Council in February 2023. Regulation (EU) 2023/606 aims at revitalizing a vehicle that was put in place back in 2015 but which, in the words of the Regulation itself, “did not scale up as expected.” With this in mind, the new regime tackles the shortfalls identified both on the managers’ side- as they will now find themselves dealing with a much more flexible product in items such as eligible assets, borrowing, or concentration and diversification rules – as well as on the side of the investors, notably retail investors, whose access to this investment product now becomes simpler.