The vote by the European Parliament on February 15, 2023, to confirm the reform of the E.U.’s European Long‑Term Investment Fund (ELTIF) Regulation was never in doubt – broad political agreement on the changes has been in place since late 2022. Nevertheless, the final passage of the legislation represents the culmination of a revision process that aims to jump-start an initiative intended to both open up alternative investment strategies to individual investors and boost funding for critical infrastructure projects, including elements of the sustainability transition, as well as for smaller businesses in Europe. The revised ELTIF Regulation was published in the E.U.’s Official Journal on March 20, 2023, following technical revision, and will apply from January 10, 2024. Accompanying regulatory technical standards implemented through European Commission delegated acts are expected to take effect soon afterwards. This guest article by Linklaters partner Silke Bernard reviews the first version of the ELTIF regime and the issues with it; explains the goal for the revision process; and discusses the key changes in the revised regime. For additional insights from Bernard, see “ALFI Seminar Examines E.U. Funds Landscape and Regulatory Developments Affecting Distribution (Part Two of Two)
” (Dec. 9, 2021).