ELTIFs: Has the EU’s infrastructure investment fund flopped?
Are European Long Term Investment Funds (ELTIFs) a failure? That would be an exaggeration, as they’re are gaining popularity with private investors. But for them to really succeed they must attract institutions as well, says Jan Wagner…
The idea behind the European long-term investment fund (ELTIF) was a clever one. Why not, the European Commission thought, create something allowing private citizens to invest in infrastructure and the funding of small and midsize enterprises (SMEs) and, by extension, provide the EU economy with a significant stimulus? Indeed, when the ELTIF was conceived earlier this decade, the Commission said the bloc needed at least EUR1.5 trillion in new infrastructure investment by 2020. The Commission hoped that the ELTIF would be instrumental in closing that financing gap.
Things have not turned out that way.