UK Long Term Asset Fund (LTAF)
The Financial Conduct Authority (FCA) has published a consultation paper on proposals to create a new authorised UK fund regime for investing in long-term assets – the long-term asset fund (LTAF).
- LTAFs will be open-ended funds that invest in long-term, illiquid assets such as private credit, VC, PE, RE and infrastructure
- LTAFs will have wide investment flexibility but will be required to invest more than 50% of the fund in unlisted securities and other long-term assets
- LTAFs will be permitted to invest in loans
- LTAFs permitted to invest in other funds subject to some safeguards
- Distribution initially restricted to professional clients and certain types of retail client but with the door left open to expand this in the future
- Borrowing set at 30% of net assets
- Only authorised full-scope UK AIFMs permitted to manage an LTAF with LTAF manager also expected to meet some additional requirements
The ACC, with the assistance of a dedicated working group, prepared a response to the FCA consultation which closed on 25 June 2021. The response is available for members to view in the LTAF Resources tab below.
(Last updated: 29 June 2021)