Asset Management and Investment FundsMarch 13, 2024
Key Features of an Irish ELTIF
European long-term investment funds (ELTIFs) are the only type of funds dedicated to long-term investments that can be distributed across borders in the EU to both professional and retail investors.
The revised ELTIF Regulation, commonly referred to as “ELTIF 2.0”, redesigns the EU regulatory framework to make ELTIFs more attractive by removing a number of existing regulatory obstacles and entered into force in early 2024.
The Irish ELTIF offering permits asset managers to house long-term investments in a range of legal structures which benefit from the existing tax treatment available to Irish-domiciled regulated funds and which also benefits from a similar supervisory framework to that afforded to Irish-domiciled qualifying investor funds. The Irish ELTIF is expected to facilitate investment by both professional and retail investors in private assets and the raising and channelling of capital towards long term investments in the real economy.
The Irish ELTIF is an EU alternative investment fund which, to operate, must obtain a certificate of authorisation from the Central Bank of Ireland (Central Bank) under both applicable Irish investment funds legislation and the ELTIF Regulation. Thereafter, it is subject to the regulation and supervision of the Central Bank.
Irish ELTIFs are available to both retail investors and professional investors provided that where an ELTIF will be marketed to retail investors, specific requirements as outlined below must be complied with. Only those investors who meet the MiFID II “professional client” criteria will constitute “professional investors” under the ELTIF regime (Professional Investors). Investors who do not meet the criteria applicable to Professional Investors constitute retail investors (Retail Investors).
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