ELTIFs: Regulations, liquidity, and returns

European Long-Term Investment Funds have surged following ELTIF 2.0 reforms, which lowered barriers and broadened distribution. Since 2024, more than 190 new ELTIFs have launched, bringing private market strategies closer to a wider investor base, often via semiliquid, evergreen structures. Rapid growth in ELTIFs comes with trade-offs. Many funds blend liquid and illiquid assets, use leverage to reach return targets, and charge fees that can erode the illiquidity premium. Drawing on manager interviews, proprietary data, and Morningstar analysis, ‘The State of ELTIFs 2026’ report shows how ELTIFs...