A significant change now permits Irish Qualifying Investor Alternative Investment Funds (QIAIFs) to grant guarantees in favour of third parties, simplifying fund finance structures across a range of transactions.
Background
Ireland transposed AIFMD II on 1 May 2026. Separately, the Central Bank of Ireland published its updated AIF Rulebook, which sets out the operational requirements for alternative investment funds authorised in Ireland, on 5 May 2026.
A key change introduced by the updated AIF Rulebook is that a QIAIF may now guarantee the obligations of third parties.
Previously, the AIF Rulebook provided that a QIAIF may not act as a guarantor in respect of a third party. For many years, this was broadly interpreted as prohibiting the giving of guarantees or security by a QIAIF in respect of the obligations of any party other than itself or a wholly owned or controlled subsidiary or limited partnership (LP).
