ELTIFs or “European long-term investment funds” are a variety of Alternative Investment Funds (AIFs), designed to raise capital for financing long-term projects, whose regime was inaugurated by the European Regulation 2015/760 (hereinafter “ELTIF 1.0”).
Nearly 10 years later, in 2023, the European Council and Parliament drew conclusions from the limited enthusiasm generated by the initial Regulation, with 84 ELTIFs identified in Europe in 2023. It is with a dual objective of modernization and improvement of the attractiveness of ELTIF AIF that Regulation (EU) 2023/606 was published on March 20, 2023 (hereinafter “ELTIF 2.0”). Coming into force on April 9, 2023, this second regulation has been applicable since January 10, 2024 (Article 2 of ELTIF 2.0 regulation).
SO, WHAT ARE THE CHANGES MADE BY THE NEW REGULATION?
KALLIOPE ASSISTS YOU
Who is concerned?
To manage an ELTIF fund, the management company does not need to obtain additional approval.
It should be noted that the application for ELTIF approval can be made simultaneously with that of AIFs with the AMF. ELTIF approval can only be granted once AIF approval has been obtained.
How?
We assist managers in preparing and submitting the ELTIF approval file to the AMF, which includes the following elements:
- the ELTIF approval application form;
- the statutes or constitutive documents of the fund, for example the prospectus with, where applicable, a request for amendment to incorporate into the prospectus the specific constraints of the regulation;
- information on the identity of the proposed manager of the ELTIF, his current and past experience in fund management and his background;
- information on the identity of the depositary;
- a description of the information to be made available to investors, including a description of the complaints handling mechanism for retail investors; and
- the compliance analysis grid for the regulation.
From the date of receipt of the complete file, the AMF has a period of two (2) months to examine the application.
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Rodolphe Cavroy
