The new ELTIF structure has spiked fund manager interest, with 41 European funds launching so far this year
Paris-based Amundi has launched Amundi Prima, an ELTIF (European Long Term Investment Fund) that will invest across private equity, private debt, and infrastructure.
The evergreen fund, categorized as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), will focus on investments in Europe’s real economy at ecological, societal, and territorial intersections with digital transitions.
Amundi Prima will have a minimum investment threshold of €1,000 ($1,058) and offer conditional quarterly redemption windows.
After acquiring Switzerland-based Alpha Associates for €350mn ($370.4mn) in February 2024, Amundi CEO Valérie Baudson said the transaction would allow the firm to ‘significantly broaden its client base, capabilities, and product offering, in a promising market.’
Alpha Associates was founded in 2004 as a spin-out from Swiss Life and manages and advises funds in private equity, private debt, and infrastructure. It also manages Private Equity Holding, an investment vehicle listed on Switzerland’s SIX since January 1999.
Amundi is Europe’s largest asset manager with an AUM of €2.2tn ($2.31tn). The firm has real, alternative & structured assets AUM of €114bn ($120.6bn).
November 13, 2024 (Preqin News) – Amundi is the latest European fund manager to launch an ELTIF fund, with 41 launched under the framework introduced in January.
Evergreen fund structures are attractive to non-institutional investors such as family offices, retail investors, and high-net-worth individuals, as they offer lower investment ticket sizes, periodic liquidity opportunities, and access to diversified portfolios. Interest has risen dramatically in recent years as private capital managers target alternative sources of capital and individual investors look for ways to access alternative assets.
The EU first launched the European Long-Term Investment Fund (ELTIF) in 2015, though uptake was low. Less than 100 ELTIF funds were launched in the nine years that followed, partly due to stringent prescriptive requirements, including that 70% of capital must be invested in eligible asset types and a minimum investor commitment of €10,000.
The European Commission took steps to increase the attractiveness of ELTIFs for investors and their role as a source of financing for EU companies. The ELTIF 2.0 structure was launched in January this year, removing the minimum investor commitment and lowering the eligible asset investment requirement to 55%.
Number of ELTIF funds launched by year, 2016–2024 YTD
Source: European Securities and Markets Agency. Data as of November 2024
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