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])