The U.K. has adopted a new category of authorized, open-end investment funds called the long-term asset fund (LTAF), the rules for which recently came into force and are set out in the U.K. Financial Conduct Authority’s (FCA) handbook of rules and guidance for authorized firms. An LTAF is authorized by the FCA and is able to invest in a range of long-term illiquid assets. It can be marketed to institutional and sophisticated retail investors in the U.K. and may be opened up in the future to greater retail distribution. In a two-part guest series, Cadwalader partners Michael Newell and Adam Blakemore introduce key features of the LTAF vehicle and related considerations. This first article provides an overview of LTAFs, where the vehicle fits among the other types of U.K. fund offerings, how it can be formed and the main actors involved in operating an LTAF. The second article will explore some of the notable features of LTAFs (e.g., liquidity, fees, marketing, etc.), as well as its tax treatment. See “Structural and Operational Considerations for Hybrid Funds” (Feb. 23, 2021); and “Panel Discusses Operational and Tax Challenges of Hybrid Funds” (Nov. 5, 2019).