ELTIF: How to invest in private markets with the EU fund structure

Updated June 18, 2026

Private markets were long a world that many retail investors could barely access: stakes in private companies, infrastructure projects, private credit, and venture capital. Since ELTIF 2.0, there has been a regulated EU fund structure that has significantly opened up this access. The market is growing rapidly, but that is precisely why selection is key. 268 ELTIFs may sound like a lot of choice. For investors, it primarily marks the start of the due diligence process, as many funds are new and a reliable track record has yet to be established.

What is an ELTIF?

An ELTIF is a European Long-Term Investment Fund, an EU-regulated fund structure for long-term investments in private markets and the real economy. The term sounds technical, but the idea behind it is relatively clear: an ELTIF bundles asset classes that were previously only available to professional or very wealthy investors into a regulated fund structure.

The distinction is important: an ELTIF is the structure through which you invest. The asset class lies beneath it. For example, an ELTIF can invest in private equity, venture capital, infrastructure, or private credit. Private equity itself describes stakes in non-publicly traded companies. If you would like to delve deeper into this asset class, you can find our Private Equity Guidehere.

For you, this means: with an ELTIF, the first priority is access and the rules of the fund structure. After that comes the question of what the specific fund actually holds, who manages it, how long your capital is tied up, and what the associated risks are.

How an ELTIF works

An ELTIF typically invests in assets that are not traded on a stock exchange on a daily basis. These can include stakes in private companies, infrastructure projects such as energy, fiber optics, or data centers, private loans to companies, or young growth firms prior to a potential IPO.

Because these assets are less liquid, an ELTIF functions differently than a fund you can buy and sell on a daily basis. The value is determined via the Net Asset Value, or NAV. For many funds, this usually happens monthly, and in rare cases, daily. A constantly fluctuating stock market price, as seen with a stock or an ETF, does not typically exist in this form.

Redemptions also follow their own rules. Many modern ELTIFs are structured as evergreen or semi-liquid funds. This means the fund runs long-term but can allow for regular redemptions under certain conditions, often quarterly and with limitations. These limitations are important because the fund cannot simply sell off illiquid assets at any time just because investors want their money back.

If you want to understand the mechanics of private market funds in more detail, such as evergreen structures, general partners, or limited partners, our article on Private Equity Funds as the next step.

ELTIF 2.0: What has changed

ELTIF 2.0 has been in effect since January 10, 2024, and has significantly opened up the fund structure for retail investors. Previously, requirements such as a minimum investment of 10,000 euros and proof of 100,000 euros in assets were common, which effectively kept access closed for many.

Today, these hurdles have been removed. The suitability test has been aligned with MiFID, fund managers have more flexibility in structuring, and final technical standards regarding liquidity and redemptions have been in place since October 2024. That may sound dry, but it is crucial: these rules are what make the ELTIF a tool that is actually practical for the everyday lives of many investors.

This reform is the reason why the market is currently growing so strongly. If you would like to read about the changes in detail, you can find an in-depth article here on ELTIF 2.0 and the most important changes for investors.

How the ELTIF market developed in 2025

The Scope ELTIF Study 2026 shows just how much the market grew last year. As of the end of 2025, there were 268 ELTIFs from 129 asset managers across Europe. In 2025 alone, 113 new ELTIFs were launched. The market volume stood at approximately 34 billion euros at the end of 2025, an increase of about 55 percent.

These figures show two things at once. First, ELTIFs have outgrown their niche. Second, a young, rapidly growing market produces many new funds with a limited track record.

This is exactly where the real work begins. More choice sounds good, but in the fund market, quantity is rarely the decisive metric. What matters is which manager has experience, how cleanly the strategy is implemented, what costs are incurred, and whether the liquidity rules align with the investment objective.

ELTIF or ETF? The key differences

ELTIFs and ETFs are different tools. An ETF usually tracks a publicly traded index and is designed for daily tradability. An ELTIF is more long-term in nature and provides access to investments that are not traded on the stock exchange every day.

Key facts:

• Tradability: ETFs are generally tradable on every stock exchange day. ELTIF shares can usually only be redeemed at set intervals, often quarterly and depending on the fund's rules.
• Investment objective: ETFs often track public markets, such as stock indices. ELTIFs invest in private markets, infrastructure, private credit, or equity in non-listed companies.
• Liquidity: ETFs are significantly more liquid. ELTIFs operate with limited liquidity because the underlying investments themselves are long-term and less easily sold.
• Costs: ETFs are often passively and cost-effectively structured. ELTIFs are actively managed, involve vetting private investments, and may have higher costs.
• Horizon: ETFs can be used for the short or long term. ELTIFs are better suited for capital that can remain invested for several years.

An ELTIF does not replace an ETF in your portfolio. It can serve as an additional building block if you intentionally want to invest in private markets for the long term and understand the limited liquidity. For a specific comparison with private equity, see also the article on Private Equity ETF.

Which asset classes an ELTIF invests in

An ELTIF can bundle various private market asset classes. That is why it is worth taking a look under the hood: two funds can both be called ELTIFs and yet invest in completely different ways.

Private Equity includes investments in non-publicly traded companies. The fund invests in companies that are not valued on the stock exchange every day, often with the aim of supporting operational development, growth, or efficiency improvements over several years.

Venture Capital focuses on young, high-growth companies. The potential here can be high, but so can the volatility and default risks. Especially with start-ups, it often comes down to whether a few winners can offset the losses of many other investments.

Infrastructure refers to investments in projects and companies that are often visible in everyday life: energy, fiber optics, data centers, transport, or utilities. Such investments can have long-term return profiles, but they are heavily dependent on regulation, capacity utilization, financing costs, and project risks.

Private Credit, also known as private debt, describes private lending outside of traditional banks. Companies receive capital, and in return, the fund receives interest and repayments. This can provide predictable return components, but it remains dependent on creditworthiness, collateral, the economic climate, and the manager's performance.

Opportunities and risks of an ELTIF

The opportunity of an ELTIF lies in access. Through a regulated fund structure, you can invest in asset classes that are less influenced by daily stock market trading and have different value drivers than traditional equity or bond markets. This can be supplemented by broader diversification across various private market building blocks.

At the same time, an ELTIF is a long-term investment. Your capital may be tied up for the duration of the term, redemptions are restricted or temporarily limited, valuations of private assets are less transparent than stock market prices, and losses—up to a total loss—are possible.

Consumer protection agencies also view ELTIFs with caution, suggesting they should at most be a small addition to a portfolio. This perspective should be taken seriously. ELTIFs can make sense for some portfolios, but only with money you can afford to lock away for the long term, and only if you truly understand the fund documentation.

Caution is therefore advised when it comes to ELTIF returns. A single target figure means little unless strategy, costs, term, liquidity, manager quality, and risk are also taken into account. A fund may sound attractive and still not fit your investment horizon.

What matters in selection: Curation

With 268 ELTIFs on the market, selection is the bottleneck. Many funds are new, many strategies sound similar at first glance, and in private markets, quality often only becomes apparent over years. A fancy name on a factsheet is not enough.

What matters:

• Asset manager track record: Has the team gained experience across different market cycles?
• Access to investments: Does the manager actually get access to good deals, or are they just buying what is left over?
• Cost structure: Are fees, ongoing charges, and potential performance fees explained clearly and fairly?
• Liquidity management: Do redemption rules and liquidity buffers align with the fund's strategy?
• Transparency: Are target investments, risks, valuations, and changes communicated in a comprehensible way?

This is exactly where NAO comes in. We rigorously vet funds and reject about 7 out of 8. Only products that meet our standards for institutional quality make it onto the platform. To this end, NAO works with asset managers such as UBS, Partners Group, Goldman Sachs Asset Management, ARK Invest, and Hamilton Lane.

This is no guarantee of future returns. It is a selection process that saves you work while remaining transparent. Because with ELTIFs, it is not about how many products are available. It is about which funds remain after careful scrutiny.

How to invest in an ELTIF

Today, you can invest in ELTIFs via regulated platforms. At NAO, four private market asset classes are accessible as ELTIFs: private equity, venture capital, infrastructure, and private credit. You can start with as little as 1 euro, including via a savings plan.

The process is intentionally digital: you open your account in the NAO app, review the available funds, read the fund documents and the KID, answer the required suitability questions, and only then decide whether an investment is right for you.

One example is the ARK Private Innovation ELTIF. It holds private companies such as OpenAI, which makes up about 26.5 percent of the fund, as well as SpaceX and Databricks. This is an example of a venture capital-oriented ELTIF, not a substitute for reviewing the entire fund structure.

Even with NAO, the classification remains the same: ELTIFs are long-term, redemptions may be quarterly and limited, and capital losses up to a total loss are possible. Before making any decision, read the fund documents and check whether the term, risk, and liquidity match your own investment horizon.

FAQ

What is an ELTIF?

An ELTIF is an EU-regulated fund structure for long-term investments in private markets and the real economy. ELTIF stands for European Long-Term Investment Fund and can provide access to, for example, private equity, venture capital, infrastructure, or private credit.

What does ELTIF 2.0 mean?

ELTIF 2.0 refers to the reform of the ELTIF regulatory framework that has been in effect since January 10, 2024. Among other things, it eliminated minimum investment requirements and proof of wealth, aligned the suitability test with MiFID, and created more flexibility regarding liquidity, redemptions, and fund structure.

What is the difference between an ELTIF and an ETF?

An ETF typically tracks a stock market index, whereas an ELTIF invests long-term in less liquid private market assets. ETFs are generally tradable daily, while ELTIF shares can usually only be redeemed on specific dates and within certain limits.

What is the minimum investment amount for an ELTIF?

Through NAO, you can invest in selected ELTIFs starting from 1 euro, including via a savings plan. The specific minimum investment depends on the provider, the platform, and the individual fund.

Which asset classes does an ELTIF invest in?

An ELTIF can invest in various long-term asset classes, such as private equity, venture capital, infrastructure, or private credit. The specific fund is always the deciding factor, as two ELTIFs can pursue very different strategies.

What are the risks of an ELTIF?

An ELTIF involves limited liquidity, long-term capital commitment, valuation risks, and potential losses up to and including a total loss of capital. In addition, there are the specific risks associated with the respective asset class, such as business risks in private equity or credit risks in private credit.

How do I sell ELTIF shares?

ELTIF shares can usually only be redeemed on set dates, often quarterly and depending on the fund's terms. Redemptions may be limited, deferred, or suspended under certain circumstances if the fund's liquidity needs to be protected.

Disclaimer and fund documents

This article is for general information purposes only and does not constitute investment advice, an individual recommendation, or an invitation to buy or sell fund shares. Private market investments and ELTIFs involve risks. Capital may be tied up for the duration of the term, redemptions may be restricted, and losses up to and including a total loss of capital are possible.

Before making a decision, please read the relevant fund documents, in particular the Key Information Document (KID), the prospectus, and the risk disclosures. You can find the fund documents and the KID in the NAO app.