Global Outlook 2024 Report


Like this article?

Sign up to our free newsletter

Irish Funds welcomes proposals to amend loan fund rules

Related Topics

Irish Funds, the representative body for the international cross-border investment funds industry in Ireland, has welcomed the Central Bank of Ireland’s announcement on its intention to amend the requirements for Loan originating Qualifying Investor AIFs (L-QIAIFs), as set out in the AIF Rulebook.

The changes will relax current restrictions and allow L-QIAIFs to make debt and equity investments linked to the loan origination strategy, a policy which reflects market demand and provisions in the ELTIF product.
This change will increase the attractiveness of the Irish L-QIAIF regime to international fund managers, as they will be allowed to make equity investments in target companies a fund has made a loan to. In addition, debt and equity securities may be held for treasury, cash management or hedging purposes.
The changes to the L-QIAIF requirements will take effect from 3 January when the revised Rulebook is published. Previously, L-QIAIFs have been prohibited from engaging in activities other than lending and directly related operations.
Pat Lardner (pictured), chief executive at Irish Funds, says: “This is good news for the industry and will further enable market-based financing of economies across Europe. It is an example of an area which we have advocated on behalf of our members and the relaxation of the current restrictions are a welcome and timely change to the L-QIAIF product. This change is a significant enhancement to Ireland’s regulated fund product range and will encourage more international fund managers to do business here.”

Like this article? Sign up to our free newsletter

Most Popular

Further Reading