The European Securities and Markets Authority (ESMA) published on 19 December 2023 its final report on the draft regulatory technical standards (RTS) under the revised European Long-Term Investment Fund (ELTIF) regulation. The RTS cover aspects like the compatibility of the ELTIF’s life with the life cycles of individual assets, features of the redemption policy, use of the matching mechanism, and cost disclosure.

The report includes the following proposition from ESMA, while allowing ELTIF managers to deviate from these under specific circumstances if justified to the relevant authority:

  • Minimum holding periods

ELTIF managers should have the discretion to set the minimum holding period for each ELTIF, tailored to its specific needs.

  • Maximum redemption frequency

ESMA suggests implementing a standard redemption frequency, ideally quarterly, for ELTIF managers.

  • Choice of liquidity management tools:

The recommendation includes a requirement for ELTIF managers to implement at least one anti-dilution mechanism, such as redemption gates, in addition to the notice period.

  • Maximum percentage of liquid assets that can be redeemed.

Beyond setting minimum liquid asset percentages based on the notice period length, there are also varying maximum limits for the amount of liquid assets that can be redeemed.

ESMA has submitted the RTS to the European Commission for endorsement and final approval. From the date of submission, the European Commission shall take a decision on whether to adopt the RTS within three months. The Commission may extend that period by one month.

For a comprehensive understanding of these changes, you can explore the detailed report on the ESMA website: ESMA34-1300023242-159_Final_report_ELTIF_RTS.pdf (

Feel free to reach out to our investment management team if you have any questions.