ELTIF marketing passport, cutting across both the AIFM and UCITS directive, is one of the most remarkable features of this new product introduced in 2015 in the context of the Capital Markets Union.
ELTIF stands for European Long-Term Investment Funds. ELTIFs complement the banking system providing an additional financing option of lasting duration to Small and Medium Enterprises, infrastructure projects and other unlisted companies in this field, whose equity or debt instrument would not have an immediately identifiable buyer. Whilst ELTIFs are closed-end in nature, they offer some early redemption features to their investors.
Whilst long-term investment funds already existed in the national laws and regulation across Europe, ELTIFs are the first standardised type of long-term investment funds, with an homogeneous product profile at EU level. ELTIF rules create more homogeneity in Europe for the offer of long-term investments opportunities to both institutional and retail investors and introduce a more streamlined concept of marketing passport for offer towards retail investors within the AIFMD framework.
The ELTIF marketing passport is an exception to the general principle governing the AIFMD marketing passport, with the introduction of powers for the authorities of the home member states of ELTIF to deal with the passport process for retail investors in their entirety, with no need to carry out a second step process directly with the national competent authorities of the target home state. The ELTIF marketing passport has also commonalities with the UCITS marketing passport, whereby it is also required that ELTIFs appoint a local facilities agent in all the domiciles where marketing will be carried out. The duties and tasks entrusted to these local facilities are by and large the ones already provided for by article 92 of UCITS directive.
At Veneziano & Partners we are true pioneers of the ELTIF marketing passport for retail investors in Europe, having been assisting already some of the finest boutique fund managers who are at the forefront in offering their ELTIFs to European retail investors. This represents a natural progression in our service offer range.
Veneziano & Partners offers strategic advisory and advocacy services for the design and implementation of fund distribution projects throughout Europe and can assist in identifying new opportunities and partners for distribution