Skip to content

ELTIF, Private Investors

Does the ELTIF have the potential to become an Evergreen?

Currently, on the radio, the perennial Evergreens are being played repeatedly... "Last Christmas, I gave you my heart..." (sorry for the earworm song 😄)... But not only songs or plants like Christmas trees can be Evergreens. They also exist in the financial world:

Evergreen funds are investment funds that are not limited to a specific duration and can continually attract capital. Typically, these are investment products from the public capital market, such as equity and index funds.

As a unique feature for products in the private markets, the ELTIF can also be designed with a defined duration of up to 99 years and without a predetermined investment volume. The difference is that its investment goals are more focused on long-term investments, such as private equity or private debt in medium-sized companies or infrastructure projects.

Similar to the better-known UCITS fund, essentially its counterpart in the public capital market, it also offers investors the possibility of early redemption (capital calls). However, with ELTIF, it’s not about daily trading but rather on a quarterly or semi-annual basis. Nevertheless, this provides investors with the advantage of an active selling decision, and they can choose to stay invested for years or not.

This could make the ELTIF an Evergreen in a double sense: Both due to its structuring and as a popular investment instrument for portfolio diversification.