The ACC, AIMA and the Bundesverband Alternative Investments e.V. (BAI) have sent a joint letter to the European Parliament and French Presidency of the European Council to highlight a critical issue with the reforms to the European Long-Term Investment Fund (ELTIF) proposed by the European Commission. 

Specifically, the letter addresses Recital 27 and Article 16(1)(b) in the Commission's proposal which prohibit ELTIFs from using borrowing to grant loans to qualifying portfolio undertakings. 

The letter argues that preventing loan-focused ELTIFs from using borrowing in this manner would not only be unjustifiably discriminatory, it will also lead to a significant degradation of loan-focused ELTIFs to extend credit to the EU economy – a key objective of the reformed ELTIF Regulation.

If you have any questions or comments, please contact Nick Smith.