European Long-Term Investment Funds (ELTIFs) have surged in popularity, with 189 new vehicles authorised over the last two years, according to research from Morningstar.
The research and ratings agency found that more vehicles are being created and more players are entering the market following the revised EU regulation, ELTIF 2.0. The rules are designed to make private market investments more accessible to retail investors and came into force in January 2024.
Morningstar found that 189 new products have been authorised since 2024, with around half structured as semiliquid or evergreen vehicles. In total, the firm counted 100 evergreen ELTIFs, with an estimated size of roughly €10bn (£8.6bn) at the end of 2025.
In terms of new entrants, 72 firms have obtained ELTIF authorisations since 2024, including the likes of Apollo, Blackstone and Carlyle, alongside smaller and more niche specialists.
“While ELTIF 2.0 has lowered regulatory barriers and fuelled a surge in new product launches, many funds remain expensive, complex, and only partially invested in private assets,” said Mara Dobrescu, senior principal at Morningstar. “It’s still a young market, but one that is expanding quickly as more firms enter the space and distribution broadens.”
Read more: Private credit ELTIF launches outpace private equity
However, the research pointed out that while platform availability has improved over the past year, retail investor adoption has been slow to pick up, with the exception of environmental and impact strategies. For example, the Germany-domiciled KlimaVest ELTIF has almost tripled its assets over the past three years and is now Europe’s largest ELTIF at €1.8bn.
Morningstar also said transparency remains a challenge, with many funds only available through specific distribution channels.
The firm also highlighted that liquidity in these funds is being tested, with Greenman’s open ELTIF gated during the final quarter of the year. Similar pressures are emerging in the US wealth market, where some business development companies have experienced heightened redemption requests, with some gating funds.
Read more: Morgan Stanley eyes UK LTAF after ELTIF launch
“ELTIFs are arriving on retail platforms just as markets are being reminded that liquidity is not a given. Recent redemption pressures in private credit and other semiliquid vehicles underline a core message of our research: the ‘semi’ in semiliquid isn’t just for show,” added Dobrescu.
The research comes as a Morningstar analysis published yesterday (25 March) revealed that global open-ended private credit funds have reported steady monthly growth in recent years, with assets under management rising to $57.4bn.
