Access Private Markets With A Long-Term Investment Strategy.
Private equity, ELTIFs and fund-of-funds can give suitable investors access to non-listed companies, infrastructure, private credit and long-term growth themes — with professional management and a regulated European framework.
Suitable only for investors who understand long-term capital commitment, limited liquidity and investment risk.
Private equity means investing outside the public stock market.
Instead of buying publicly traded shares, private equity invests in companies, projects or assets that are not listed on a stock exchange. These investments can offer access to long-term growth opportunities, but they are less liquid, more complex and usually require patience.
Private equity should be an addition, not your emergency fund.
Before investing in ELTIFs or private equity structures, you should have sufficient liquidity, a clear investment strategy, suitable risk tolerance and a long-term horizon.
What ELTIFs and fund-of-funds can offer.
ELTIFs and fund-of-funds structures can make private market investments more accessible, diversified and professionally managed — but they do not remove the underlying risks.
Access to private companies
Participate in non-listed businesses, growth companies, infrastructure or other long-term assets that are usually not available through normal ETFs.
Diversification
Fund-of-funds can spread capital across multiple managers, sectors, vintages and strategies. Diversification can reduce single-investment risk but cannot eliminate market risk.
Professional management
Experienced fund managers select, monitor and allocate investments across private market opportunities according to the fund strategy.
Regulated framework
ELTIFs are subject to a European regulatory framework, including rules around eligible assets, management and disclosure.
Long-term growth focus
Private market strategies are usually designed to create value over several years, not for short-term speculation or quick withdrawals.
Tax treatment depends
Tax treatment depends on fund structure, investor residence, account setup and personal tax situation. Individual tax advice may be required.
A regulated route into long-term private assets.
The ELTIF framework was created to channel long-term capital into the real economy. For suitable investors, it can offer a structured way to access private markets through a regulated investment vehicle.
Possible investment areas
- Private equity and growth companies
- Infrastructure and energy transition projects
- Private credit and financing strategies
- Real assets and long-term business projects
- Fund-of-funds with several underlying managers
ELTIF vs. fund-of-funds — what is the difference?
Both structures can be used to access private markets, but the details matter. The right choice depends on your portfolio, investment amount, liquidity needs and risk profile.
European Long-Term Investment Fund
An ELTIF is a regulated European investment fund designed for long-term assets. It can be distributed to suitable retail and professional investors under the applicable rules.
- EU regulatory framework
- Access to long-term real economy assets
- Can be available to retail investors
- May have redemption restrictions or lock-up periods
- Requires careful review of costs and liquidity terms
Multiple funds in one strategy
A fund-of-funds invests into several underlying private market funds. This can improve diversification across managers, sectors and investment years.
- Diversification across underlying funds
- Access to specialized private market managers
- Can reduce single-manager concentration
- Additional fund layer may increase total costs
- Liquidity depends on the underlying structure
A possible portfolio building block for long-term investors.
Private markets can complement traditional investments such as ETFs, stocks, bonds and real estate. They may provide different return drivers and access to companies before or without public stock market listing.
- Potential access to companies before public listing
- Exposure to infrastructure, private credit or real assets
- Different return drivers than public markets
- Long-term value creation approach
- Useful only as part of a diversified total portfolio
Private equity is not suitable for everyone.
These investments can be illiquid and complex. You should only invest capital that you do not need for your emergency fund, property purchase, relocation plans or short-term goals.
- Capital loss, including total loss, is possible
- Limited liquidity and long holding periods
- Valuations may be less transparent than listed markets
- Fees can be higher than ETFs or public funds
- Distributions and returns are not guaranteed
Suitable investors usually have patience, liquidity and risk capacity.
Private equity and ELTIFs can be interesting for investors who already have a stable foundation and want to add long-term private market exposure.
Established portfolio
You already have a diversified base portfolio, emergency reserve and clear financial plan.
Long horizon
You can commit capital for several years and do not need quick access to the invested money.
Risk tolerance
You understand that private markets fluctuate and that not every underlying investment will be successful.
Expats in Germany
You want English-speaking guidance on German and European investment structures.
Wealth building
You are looking for a long-term satellite investment beyond ETFs, pensions and real estate.
Tax-aware planning
You want the investment checked in context of German tax residency, relocation plans and retirement planning.
How German Sherpa helps you evaluate private market investments.
We do not start with a product. We start with your situation, your risk profile and whether this asset class belongs in your portfolio at all.
Suitability check
We review your goals, liquidity, investment horizon, risk tolerance and experience.
Portfolio context
We check whether private equity fits alongside ETFs, pensions, cash reserve and real estate plans.
Product comparison
We compare available structures, costs, liquidity rules, managers, risks and documentation.
Decision support
You receive a clear explanation before making any investment decision.
The details matter more than the headline return story.
A private equity or ELTIF investment should never be selected based only on marketing materials. The structure, risks and costs must be understood.
- Investment strategy and target assets
- Lock-up periods and redemption rules
- Cost structure and performance fees
- Minimum investment and suitability requirements
- Manager track record and diversification
- Currency, tax and residency considerations
To prepare your investment check, please share:
- Approximate investment amount
- Investment horizon, ideally 5-10+ years
- Existing investments and pension setup
- Emergency reserve and liquidity needs
- Risk tolerance and investment experience
- German tax residency and relocation plans
- Whether you are retail, professional or institutional investor
Find out whether ELTIFs or private equity fit your portfolio.
Book a consultation with German Sherpa. We help you understand opportunities, risks, costs, liquidity and suitability before you commit long-term capital.
Clarity Starts With Structure.
We advise expats who live and work in Germany.
