Regulation on european long-term investment funds has entered into force

The regulation on European Long-Term Investment Funds (ELTIFs) has entered into force on 9 December 2015.

This new investment fund legal framework is designed for investors willing to put money into companies and projects for a long term period and it is subject to certain asset diversifications rules since it should invest 70% of its assets in unlisted SMEs needing long-term capital and active in the infrastructure, real estate and intellectual property fields together with listed SMEs with a market capitalisation of less than EUR 500 million; finally the use of derivatives would be restricted only to managing currency risk

For more information please refer to our previous alerts or contact Samia Rabia, Investment Funds Partner.