Further to our post in September, the European Commission (Commission) has commenced a public consultation relating to its review of the regulatory framework of the European Long Term Investment Fund (ELTIF).

In this consultation, the Commission seeks views on the following topics:

• scope of the ELTIF authorisation and process;
• ELTIF investment universe, eligible assets and qualifying portfolio undertakings;
• borrowing of cash and leverage; and
• rules on portfolio composition and diversification.

All stakeholders are able to contribute to the consultation by filling in the online questionnaire accessible via the Commission webpage by midnight (CEST) on 19 January 2021.

Macfarlanes will continue to maintain its involvement with the Alternative Credit Council’s ELTIF working group in an effort to ensure that any legislative changes lead to material improvement in the ELTIF framework.