WHITEPAPER
Why ELTIF now?
ELTIFs are becoming the investment vehicle of choice and we expect rapid growth in the coming years. Contact us to learn more about the ELTIF and how it might help you build more resilient portfolios.
Skip to content
Welcome to the BlackRock site for financial intermediaries
Before you proceed, please take a moment to review and accept the Terms and Conditions below.
Financial Intermediaries
On this website, Financial Intermediaries are investors that qualify as both a Professional Client and a Qualified Investor.
In summary, a person who can both be classified as a professional client under the Markets in Financial Instruments Directive II (2014/65/EU, “MiFID”) and a qualified investor in accordance with the Prospectus Regulation ((EU) 2017/1129) will generally need to meet one or more of the following requirements:
(1) An entity required to be authorised or regulated to operate in the financial markets. The following list includes all authorised entities carrying out the characteristic activities of the entities mentioned, whether authorised by an EEA State or a third country and whether or not authorised by reference to a directive:
(a) a credit institution;
(b) an investment firm;
(c) any other authorised or regulated financial institution;
(d) an insurance company;
(e) a collective investment scheme or the management company of such a scheme;
(f) a pension fund or the management company of a pension fund;
(g) a commodity or commodity derivatives dealer;
(h) a local;
(i) any other institutional investor;
(2) a large undertaking that meets two of the following size requirements on a company basis: (i) a balance sheet total of EUR 20,000,000; (ii) an annual net turnover of EUR 40,000,000; (iii) own funds of EUR 2,000,000;
(3) a national or regional government, a public body that manages public debt, a central bank, an international or supranational institution (such as the World Bank, the IMF, the ECB, the EIB) or another similar international organization;
(4) a natural person resident in an EEA State that permits the authorisation of natural persons as qualified investors, who expressly asks to be treated as a professional client and a qualified investor and who meets at least two of the following criteria: (i) he/she has carried out transactions on securities markets at an average frequency of, at least, 10 per quarter over the previous four quarters before the application, (ii) the size of his/her financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 500.000, (iii) he/she works or has worked for at least one year in the financial sector in a professional position which requires knowledge of securities investment.
Please note that the above summary is provided for information purposes only. If you are uncertain as to whether you can both be classified as a professional client under the Markets in Financial Instruments Directive and classed as a qualified investor under the Prospectus Directive then you should seek independent advice.
Terms and conditions
Please read this page before proceeding, as it explains certain restrictions imposed by law on the distribution of this information and the countries in which our funds are authorised for sale. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction.
Please note that you are required to read and accept the terms of our Privacy Policy before you are able to access our websites.
Once you have confirmed that you agree to the legal information in this document, and the Privacy Policy – by indicating your consent above – we will place a cookie on your computer to recognise you and prevent this page reappearing should you access this site, or other BlackRock sites, on future occasions. The cookie will expire after six months, or sooner should there be a material change to this important information.
By confirming that you have read this important information, you also:
(i) Agree that such information will apply to any subsequent access to the Individual investors (or Institutions / Intermediaries) section of this website by you, and that all such subsequent access will be subject to the disclaimers, risk warnings and other information set out herein; and
(ii) Warrant that no other person will access the Individual investors section of this website from the same computer and logon as you are currently using.
The offshore funds described in the following pages are administered and managed by companies within the BlackRock Group and can be marketed in certain jurisdictions only. It is your responsibility to be aware of the applicable laws and regulations of your country of residence. Further information is available in the Prospectus or other constitutional document for each fund.
This does not constitute an offer or solicitation to sell shares in any of the funds referred to on this site, by anyone in any jurisdiction in which such offer, solicitation or distribution would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
Specifically, the funds described are not available for distribution to or investment by US investors. The units/shares will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") and, except in a transaction which does not violate the Securities Act or any other applicable US securities laws (including without limitation any applicable law of any of the States of the USA) may not be directly or indirectly offered or sold in the USA or any of its territories or possessions or areas subject to its jurisdiction or to or for the benefit of a US Person.
The funds described have not been, nor will they be, qualified for distribution to the public in Canada as no prospectus for these funds has been filed with any securities commission or regulatory authority in Canada or any province or territory thereof. This website is not, and under no circumstances is to be construed, as an advertisement or any other step in furtherance of a public offering of shares in Canada. No person resident in Canada for the purposes of the Income Tax Act (Canada) may purchase or accept a transfer of shares in the funds described unless he or she is eligible to do so under applicable Canadian or provincial laws.
Applications to invest in any fund referred to on this site, must only be made on the basis of the offer document relating to the specific investment (e.g. prospectus, simplified prospectus, key investor information document or other applicable terms and conditions).
As a result of money laundering regulations, additional documentation for identification purposes may be required when you make your investment. Details are contained in the relevant Prospectus or other constitutional document.
If you are unsure about the meaning of any information provided please consult your financial or other professional adviser.
The information contained on this site is subject to copyright with all rights reserved. It must not be reproduced, copied or redistributed in whole or in part.
The information contained on this site is published in good faith but no representation or warranty, express or implied, is made by BlackRock (Netherlands) B.V. (“BNBV”) or by any person as to its accuracy or completeness and it should not be relied on as such. BNBV shall have no liability for any loss or damage arising out of the use or reliance on the information provided including without limitation, any loss of profit or any other damage, direct or consequential. No information on this site constitutes investment, tax, legal or any other advice.
Where a claim is brought against BlackRock by a third party in relation to your use of this website, you hereby agree to fully reimburse BlackRock for all losses, costs, actions, proceedings, claims, damages, expenses (including reasonable legal costs and expenses), or liabilities, whatsoever suffered or incurred directly by BlackRock as a consequence of improper use of this website. Neither party should be liable to the other for any loss or damage which may be suffered by the other party due to any cause beyond the first party's reasonable control including without limitation any power failure.
You acknowledge and agree that it is your responsibility to keep secure and confidential any passwords that we issue to you and your authorised employees and not to let such password(s) become public knowledge. If any password(s) become known by someone other than you and your authorised employees, you must change those particular password(s) immediately using the function available for this purpose on the Website.
You may leave the BNBV website when you access certain links on this website. In so doing, you may be proceeding to the site of an organisation that is not regulated. BNBV has not examined any of these websites and does not assume any responsibility for the contents of such websites nor the services, products or items offered through such websites.
BNBV shall have no liability for any data transmission errors such as data loss or damage or alteration of any kind, including, but not limited to, any direct, indirect or consequential damage, arising out of the use of the services provided herein.
Risk Warnings
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.
BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information. Investment should be made on the basis of the relevant Prospectus which is available from the manager.
For your protection, telephone calls and/or other electronic communications which result in, or are intended to result in, transactions will be recorded or saved.
Investors should read the offering documents for further details including the risk factors before making an investment.
Please note that while some of the BlackRock funds are "ring-fenced", others form part of a single company and are not. For BlackRock funds that do not have segregated liability status, in the event of a single BlackRock fund being unable to meet liabilities attributable to that BlackRock fund out of the assets attributable to it, the excess may be met out of the assets attributable to the other BlackRock funds within the same company. We refer you to the prospectus or other relevant terms and conditions of each BlackRock fund for further information in this regard.
The views expressed herein do not necessarily reflect the views of BlackRock as a whole or any part thereof, nor do they constitute investment or any other advice.
Any research found on these pages has been procured and may have been acted on by BlackRock for its own purposes.
This site is operated and issued by BNBV which is authorised and regulated by the Autoriteit Financiële Markten («AFM»). You can gain access to the AFM website from the following link: www.afm.nl. BlackRock (Netherlands) B.V. is a company registered in the Netherlands, No. 17068311. Registered Office: Amstelplein 1, 1096 HA, Amsterdam. BlackRock is a trading name of BlackRock (Netherlands) B.V. VAT No 007883250. General enquiries about this website should be sent to EMEAwebmaster@blackrock.com. This email address should not be used for any enquiries relating to investments.
©2024 BlackRock, Inc. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners
ELTIF
Uncovering ELTIFs
Introduced in 2015, the ELTIF is a regulatory wrapper that gives closed-ended private assets funds a single passport to be marketed to private wealth investors across the EU. ELTIFs invest in long-term equity and debt investments in the real economy of the EU and beyond, while being under the protection of a dedicated European regulatory regime.
Why ELTIFs?
A design that breaks down barriers to entry.
The ELTIF is the first wrapper that allows a scalable and regulated pan-European distribution of private markets investments across different investor types. This stands in stark contrast to the traditional approach of creating individual wrappers per jurisdiction.
Moreover, the EU has recently approved changes to make the ELTIF vehicle even more attractive by providing greater flexibility regarding eligible assets and simplifying access.1
Driving Europe's economic growth.
The EU views the ELTIF as a powerful vehicle to boost investment in infrastructure and other long-term projects and businesses - both within the real economy of the EU and beyond. As such, investors in ELTIFs provide local companies and infrastructure with additional financing, driving economic growth within the EU.
Democratising private markets for European investors.
Adding private markets to a clients' portfolios may lead to increased diversification, enhanced returns and a hedge against inflation. It also provides the opportunity to invest in tangible and socially responsible undertakings, such as wind farms, schools, hospitals, or SMEs.
Risk: Diversification and asset allocation may not fully protect you from market risk.
1 EFAMA, February 2023.
POTENTIAL BENEFITS
Deep dive into the potential benefits of private markets
Paragraph-2
Paragraph-3
Paragraph-4
Paragraph-5,Paragraph-6,Content Block-1,Source-2
Diversification
Private markets investments are investments that are not readily available in public markets. Their underlying risks are uncorrelated or less correlated with traditional investments such as listed bonds or equities. The low correlation with traditional asset classes provides an opportunity to diversify portfolios, reducing overall risk exposure across investments.
Risk: Diversification and asset allocation may not fully protect you from market risk.
Seeks stable income
Private markets investments, especially real assets (infrastructure and real estate), have the potential to deliver long-term stable cash yield throughout a varied market cycle.
Inflation mitigation
Real assets investments are investments in physical assets such as wind farms, offices, warehouses, airports, etc. Investing in such 'real' assets may be a useful addition to the toolkits for those looking to mitigate the impact of inflation during inflationary environments. For example, infrastructure projects frequently have their revenues linked to an inflation index. This means that when the inflation goes up, the revenues will also go up, mitigating inflation.
Enhanced return potential
In addition to their diversifying nature, allocations made to private market have the potential to increase a portfolio's total return as private markets have historically been able to outperform their public market equivalents:
Private Equity
Annualised return of private equity manager universe vs. global equities.2
Private Equity represented by the Burgiss Private Equity Manager Universe for the 20-year period ending 3/31/22. Burgiss data reflects quarterly time-weighted returns.
Private credit
Annualised return of private credit vs US bonds.2
Private Credit represented by the Cliffwater Direct Lending Index. Private credit reflects rolling quarterly returns and most recent return from 9/30/15 (index inception) to 3/31/22 (latest available data). Refer to the end of the page for additional details of US aggregate which are US bonds indices.
Past performance does not guarantee or indicate future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an unmanaged index.
Asset class comparison is used to demonstrate private market performance compared to public market performance during comparable time periods. There are material differences in individual index/ manager universe methodologies (both public and private) and differences in the way public and private market performance is calculated; the comparisons shown may not fully reflect these differences. In general, public market indexes are unmanaged, represent a group of constituent securities which may change over time, reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses. Private market manager universes and indices often rely on self-reporting by managers. Therefore, there may be survivorship bias given that fund managers have discretion to report, or to discontinue reporting for various reasons (e.g. due to liquidation), and therefore private market manager universes and indices may reflect a bias towards funds with track records of success. Private Equity represented by the Burgiss Private Equity Manager Universe for the 20-year period ending 30/09/22. Burgiss data reflects quarterly time-weighted returns. Burgiss data is sourced from limited partners of these private funds and calculates results net of fees and carried interest, providing results that are updated and published on a quarterly basis. Private Credit represented by the Cliffwater Direct Lending Index. Private credit reflects rolling quarterly returns and most recent return from 30/09/15 (index inception) to 31/12/22 (latest available data). For more information on the individual indexes, please scroll down to the end of the webpage.
Two premiums drive Private Markets outperformance
Illiquidity premia
As private market investments do not offer regular liquidity they are typically held for multiple years and deemed illiquid. However, this illiquidity may not be a bad thing as investors may benefit from the illiquidity premium, which tends to result in higher expected returns.
Risk: The investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the investments may not be able to realise the investment at the latest market price or at a price considered fair.
Complexity premia
As private markets investments are typically non-standardised, investment managers need to navigate material complexity when making an investment. The complexity premium is the compensation associated with negotiating, structuring and underwriting private deals, which requires scale and experience.
BlackRock Alternatives reviews approximately 9.000 deals annually with a ~5% deployment rate3 thanks to its scale and position in the global capital markets and information advantage.4
2 For additional information about the indexes/universe, please scroll down to the end of the page. Asset class comparison is used to demonstrate private market performance compared to public market performance during comparable time periods. There are material differences in individual index/ manager universe methodologies (both public and private) and differences in the way public and private market performance is calculated; the comparisons shown may not fully reflect these differences. In general, public market indexes are unmanaged, represent a group of constituent securities which may change over time, reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses. Private market manager universes and indices often rely on self-reporting by managers. Therefore, there may be survivorship bias given that fund managers have discretion to report, or to discontinue reporting for various reasons (e.g. due to liquidation), and therefore private market manager universes and indices may reflect a bias towards funds with track records of success. Private Equity represented by the Burgiss Private Equity Manager Universe for the 20-year period ending 3/31/22. Burgiss data reflects quarterly time-weighted returns. Burgiss data is sourced from limited partners of these private funds and calculates results net of fees and carried interest, providing results that are updated and published on a quarterly basis. Private Credit represented by the Cliffwater Direct Lending Index. Private credit reflects rolling quarterly returns and most recent return from 9/30/15 (index inception) to 3/31/22 (latest available data).
3 2022 year-end figure.
4 BlackRock, as of 30 December 2022.
In Action – Investing in the real economy of the European Union
Hypothetical examples
Helping an Italian SME thrive while remaining independent
The capital could be put toward a privately-owned clothing company based in Italy which prefers to work privately without going to public markets. This new source of capital will help this Italian clothing company better realise its potential, drive growth, and stimulate employment while remaining independent.
Creating additional sources of energy for local communities in Denmark
The capital can also be used to help a wind farm developer who buys real estate and contracts with construction companies to build wind turbines. These turbines will generate electricity that can be sold to utility companies. This investment chain puts money directly into the 'real economy', creating employment and stimulating economic activity in the region.
Investing in renewable power can also drive measurable and comparable impacts on local communities. Other infrastructure projects examples include ports, streets, pipelines and/or communication networks.
Why BlackRock for ELTIF?
BlackRock was one of the first movers to offer ELTIFs to retail and institutional investors in Europe and has successfully grown its platform to four ELTIFs across private equity and private infrastructure so far. BlackRock's ELTIF platform aims to regularly launch new private market ELTIFs to its European client base.
Previous ELTIF fundraises:
Explore more
About us
Products
Themes
Insights
ETFs & Indexing
© 2024 BlackRock, Inc. All Rights Reserved.
MKTGM0724E/S-3735332