The Alternative Investment Management Association (AIMA), a global representative for the alternative investment industry, and its private credit affiliate, the Alternative Credit Council (ACC), has welcomed the political agreement on the European Long-Term Investment Funds (ELTIF) Regulation confirmed earlier this week.
The modernisation of the ELTIF framework will lead to a significant increase of investment into the EU economy at a time when traditional sources of financing are becoming more challenging for businesses to access.
The new rules will make it easier for asset managers to launch products that cater to both institutional and retail clientele with additional flexibility for the former and important protections for the latter, ensuring that regulatory requirements are properly calibrated.
AIMA and the ACC have assisted EU policymakers by providing technical solutions to the key areas in need of change with ELTIF, such as improving the supply side of financing, while retaining the original policy goals.
Introduced in 2015, the ELTIF framework has seen a modest level of take up because of several restrictive features such as prohibitions on co-investments that did not allow asset managers to include ELTIFs in their private market product lines.