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ARTICLE · 24 JUNE 2024

AIFMD II: A Consecration For Debt Funds

ELVINGER HOSS PRUSSEN, société anonyme
Explore more from ELVINGER HOSS PRUSSEN, société anonyme

AIFMD II entered into force on 16 April 2024, and Member States have 2 years to implement it. By clarifying the rules applying to loan origination by alternative investment funds, AIFMD II will help Luxembourg...

LuxembourgFinance and Banking
Thibaut Partsch
Thibaut Partsch

AIFMD II entered into force on 16 April 2024, and Member States have 2 years to implement it. By clarifying the rules applying to loan origination by alternative investment funds, AIFMD II will help Luxembourg, as a global leader in debt funds, extend its influence in European finance.

LOAN ORIGINATION IN AIFMD II

AIFMD II DEFINES "LOAN-ORIGINATING AIF" (LOF) AS AN AIF WHOSE INVESTMENT STRATEGY IS MAINLY TO ORIGINATE LOANS; OR, WHEN THE VALUE OF AN AIF'S ORIGINATED LOANS REPRESENTS AT LEAST 50% OF ITS NAV.

Thibaut Partsch, partner, Elvinger Hoss Prussen

EU AIFMs will now be able to originate loans across the EU under the passport regime, as AIFMD II adds this to the functions that an AIFM may perform while managing an AIF. In this way, AIFMD II aims to provide financing for the real economy and lay out common rules, which is critical for EU SMEs having trouble accessing traditional lending. It settles years of uncertainty on the possibility for actors other

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