Edmond de Rothschild (EdR) has launched a new private equity fund of funds under the revamped Eltif 2.0 framework, marking its first such strategy as it broadens access for private investors to private markets opportunities. 

The new vehicle, Edmond de Rothschild Private Equity Solutions SICAV – Convictions IV Eltif, offers entry to investors from €100,000 and provides exposure across the firm’s established strategies in buyout, growth capital, real assets, and emerging economies. The fund will allocate capital through primary, secondary, and co-investment transactions.

Johnny el Hachem, CEO of Edmond de Rothschild Private Equity, said: “This fund offers clients a concrete gateway to the real economy, at the service of sustainable, inclusive, and resilient growth.”

Management fees will range between 0.5% and 2%, depending on share class, while a carried interest of 20% could apply on secondary and co-investments subject to a 7% preferred return hurdle.

The fund, classified under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), will initially be available in Germany, Austria, Belgium, Spain, Italy, Luxembourg, and Portugal, with France expected to follow shortly.

Previously, Eltif regulations did not allow for fund-of-funds structures. The introduction of Eltif 2.0 rules at the beginning of 2024 has created new opportunities for firms to offer diversified private equity products to individual investors—although funds of funds still represent a minority of the vehicles launched so far.

Edmond de Rothschild’s private equity division currently manages €4.1bn in assets across 11 strategies, while the broader group oversees €101bn.

Source: CityWire