In total, Scope identified 77 Eltif funds at the end of 2022, 23 more than in 2021. 44 of these 77 funds are registered with Luxembourg’s financial regulator, the CSSF. Of the 23 new funds identified in 2022, 20 are domiciled in Luxembourg. The grand duchy has the most registered funds, followed by France with 21. Italy and Spain had 10 and 2 Eltifs registered respectively.
In terms of the distribution of assets under management by supervisory authority, Luxembourg also leads with €5.8bn. The financial markets authority supervises €4.7bn.
Among the most active management companies offering their products to private investors are Amundi, Azimut, Blackrock, Commerz Real, Generali Investments, Eurazeo (which acquired Idinvest in 2018), Muzinich, Neuberger Berman and Partners Group.
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In terms of market volume, Scope estimates the size of the market at between €11.25bn and €11.35bn by the end of 2022. Compared to 2021, the volume of the market has increased by approximately €3.9bn--a growth of 52% which, according to Scope, “shows a certain dynamism of this market.”
In terms of volume placed, France leads the way with €3.77bn, of which €1.92bn was placed in 2022. Scope attributes this performance to the fact that “the products are intended for institutional clients.”
With a total volume placed of €2.56bn at the end of 2022, Italy is the second largest European Eltif market, up by €780m on the previous year’s volume. Unlike France, the market is dominated by private investors thanks to tax incentives.
Germany is in third place with €1.51bn invested, of which €620m in 2022.
Spain remains the fourth largest Eltif market in Europe, with a total volume invested of €560m.
Eltif is becoming increasingly attractive to private investors
As in 2021, volumes placed in 2022 are relatively evenly split between private equity (32.3%), infrastructure (31.3%) and private debt (27.4%) Eltifs. Mixed and real estate strategies account for 9% of the total.
Private equity and private debt dominate in terms of the number of products, but infrastructure Eltifs have much larger amounts outstanding “as they are mainly aimed at institutional clients.”
Products distributed to private investors gained in importance: their total market share rose from 54% to 59.5%, with €2.5bn collected last year. Products reserved to institutional investors fell to €1.5bn and saw their market share decrease to 40% from 46% in 2021.
This story was first published in French on . It has been translated and edited for Delano.