The most important financial terms - with simple and concise explanations.
An ELTIF is a type of investment fund that channels capital into long-term real-economy investments in the private market such as infrastructure projects, real estate, private credit and private equity - which concerns for instance small and medium-sized enterprises (SMEs) not listed on the stock exchange. These funds are regulated by the European Union and designed to provide investors with opportunities to invest in long-term assets that can potentially offer higher returns while they may involve higher risks and longer investment horizons.
ELTIFs are available to both retail and professional investors, although there may be minimum investment thresholds and liquidity is typically lower compared to other investment funds. ELTIFs can focus solely on infrastructure, real estate, private credit, private equity or invest in a mix of them.