ELTIFs are governed by two laws:
- Regulation (EU) 2015/760 of the European Parliament and of the Council of 29 April 2015 on ELTIFs, which lays down uniform rules on the authorisation, investment policies and operating conditions of EU alternative investment funds (EU AIFs) or compartments of EU AIFs that are marketed in the Union as European long-term investment funds (ELTIFs).
- Law of 12 July 2013 (transposing directive 2011/61/EU on Alternative Investment Fund Managers into Luxembourg Law), which lays down the rules for the authorisation, ongoing operation and the requirements of transparency of AIFMs established in Luxembourg which manage and/or market AIFs in the European Union.
An ELTIF must invest at least 70 % of its capital in eligible investment assets within a maximum of five years of authorisation. The vehicle can invest up to :
- 10% of its capital in units of any single ELTIF, EU Social Entrepreneurship Funds (EuSEF) or EU Venture Capital Funds (EuVECA);
- 10% of its capital in instruments issued by, or loans granted to, any single qualifying portfolio undertaking;
- 10% of its capital directly or indirectly in a single real asset;
- 5% of its capital in eligible assets for UCITS, given that those assets have been issued by any single body;