European authorities are planning to make it easier for individual investors to put their money in private equity by loosening rules around an investment structure that buyout firms see as a gateway for billions of dollars in fresh capital.
The proposed changes affect the European Long-Term Investment Fund, or ELTIF, which began in 2015 to encourage investment into infrastructure and companies seeking long-term capital. But only 57 products with estimated assets under management of about 2.4 billion euros ($2.7 billion) have been launched as of October, with managers put off by restrictions on how the fund could be used.
Geoffroy Renard, general counsel at Tikehau Capital, said his firm will add to its single ELTIF product as tapping retail investors for capital is part of the strategy. Ajay Pathak, a partner at law firm Goodwin Procter, also expects an increase in interest if the changes come into effect, particularly in real estate and infrastructure.
Read more/Source: BNN Bloomberg
