Political agreement reached on ELTIF
Published: 25 October 2022
On 19 October political agreement was reach in the trilogue negotiations between the Council and European Parliament on the ELITF review.
We are pleased to report a favourable outcome of which notable takeaways include:
- Loan originating ELTIFs are permitted to use leverage in the same way as other ELTIFs;
- References to shadow banking have been removed;
- Fund-of-fund products for retail investors will be permitted;
- Removal of the sustainable subcategory of ELTIFs;
- Leverage limit kept at the higher threshold of 50% for retail marketed ELTIFs and 100% for professionally marketed ELTIFs;
- Expansion of the eligible assets category.
Our full summary of the agreement will be made available once further details are released.
For further information please contact Nick Smith ([email protected])