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ELTIF, Private Investors

ELTIF 2.0 becomes the Catalyst for End-to-End Processing

The processing and administration of alternative investment funds (AIFs) are traditionally considered more costly compared to equity or index funds. AIFs continue to be primarily processed manually, partly due to their complex structures. Manual processing sometimes extends to the use of good old fax machines.

Not only for cost reasons but also for reasons of efficiency and scalability, there can only be one goal: an end-to-end distribution solution that digitally enables all steps from onboarding through order routing to settlement. In other words, an automated processing, known as “Straight-Through-Processing” (STP). This is indeed a challenge for financial products in the private markets, as mentioned earlier, they are more complex than those in the public capital market.

Particularly through the ELTIF 2.0, there is increasing activity in the private markets, and interest in AIFs has significantly risen, especially among private investors.

However, the success of ELTIF – even in its 2.0 version – depends not only on the attractiveness of the respective fund but also on the processes behind it. This includes innovative technological solutions breaking down existing barriers and making, for example, so-called Non-STP products STP-compatible.

Only 4 weeks to go: The countdown for ELTIF 2.0 is underway, and we are excited to be part of the transformation towards greater cost efficiency and transparency.