How blockchain technology can kickstart ELTIF investing
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lockchain technology could help bring alternative investments to retail investors - and do so through the ELTIF, a fund structure that has not lived up to its potential, says
Christian Edelmann
of management consultancy Oliver Wyman.
The European Long-Term Investment Fund (ELTIF) was supposed to throw open the doors of the cloistered kingdom of alternative assets to ordinary investors. Six years later, the rush still hasn’t happened.
This should be a golden era of ELTIF investing for institutional and retail investors alike. The global pandemic has prompted governments around the world to tap enormous amounts of taxpayer money to fund major infrastructure projects. At the same time, low and at times negative interest rates have pushed investors further out on the risk curve in a bid to generate returns. And a wave of adventurousness has swept through markets around the world since the pandemic began, from cryptocurrencies to online investing boards, as more retail investors allocate money to capital markets as an alternative to savings accounts.