At the recent BAI Alternative Investor Conference 2024, Max Sergelius, Team Head Product Legal at Aquila Capital, joined a panel of industry experts to discuss the topic "Infrastructure – An Overview of German Fund Structures and Comparison of Tax and Regulatory Advantages and Disadvantages."
Max and fellow panellists discussed recent changes in the infrastructural fund landscape at both German and European levels, including the German “Infrastruktursondervermögen” and the recent reform of the European Long-Term Investment Fund (ELTIF 2.0).
Max highlighted different structuring options for institutional funds as well as retail funds, using our recently launched AC One Planet ELTIF as a prime example. Against the background of vast investment needs on the one hand and high interest rates and the need of institutional investors in particular to (re-)balance their portfolios on the other hand, leveraging retail fund formats like ELTIF in order to broaden the investor base is an exciting opportunity for the financing of infrastructure assets.
The panel engaged in a fruitful discussion on regulatory and tax matters and pitfalls. In summary, there is clearly a lot of excitement in the market about the new structuring possibilities in particular for retail offerings. Comparing the structural alternatives, the European ELTIF format offers more flexibility than its German counterpart “Infrastruktursondervermögen”. On the tax side, for institutional funds a need to harmonise/improve cumbersome German taxation rules was identified, whilst tax incentives for retail investors would be an effective tool to channel retail money into much needed infrastructure investments. Last but not least managers looking to launch an ELTIF should pay close attention to the still rather limited settlement options in the German market which may pose a challenge from an operational perspective.
Find out more about our AC One Planet ELTIF: https://lnkd.in/eEwECywA
#InfrastructureInvestment #RegulatoryInsights #AquilaCapital Bundesverband Alternative Investments e.V.
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1wWell done!