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ARTICLE · 01 JUNE 2026

The AIFMD II Directive And Financing Transactions

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The Luxembourg law of March 3, 2026 transposed the AIFMD II Directive into national law, introducing significant changes to the regulatory framework governing alternative investment funds. This article examines the practical implications for financing transactions involving Luxembourg AIFs, analyzing how the new rules on loan origination, leverage caps, concentration limits, and enhanced disclosure requirements affect both lenders and borrowers in structured finance arrangements.

LuxembourgFinance and Banking
Laura Rossi
Laura Rossi
Aurélien Martinot
Aurélien Martinot
Thomas Tomasic
Thomas Tomasic

The Luxembourg law of March 3, 2026 (the Law) transposed Directive 2024/927/EU (the AIFMD II Directive) into Luxembourg law by amending both the Luxembourg law of July 12, 2013 on alternative investment fund managers and the law of December 17, 2010 on undertakings for collective investment.

Among the key innovations introduced by the AIFMD II Directive are, notably, the harmonization of rules governing loan-originating alternative investment funds, enhanced liquidity management tools, new delegation and substance requirements, and strengthened investor disclosure obligations.

Against this backdrop, the present article focuses specifically on the practical impact of the Law on financing transactions involving a Luxembourg alternative investment fund (AIF), whether as lender or as borrower, by highlighting considerations for certain stakeholders entering into a financing transaction.

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