Dillon Eustace Ireland Update – Loan Origination Funds

In mid-2013 the Central Bank of Ireland (“Central Bank”) issued a Discussion Paper in relation to loan origination by Irish domiciled regulated alternative investment funds.

Context for that Discussion Paper included the evident appetite for launching direct loan origination products on the part of credit managers as well as the apparent need for alternative credit sources for commercial enterprises in an environment where the bank lending had been significantly curtailed.

On July 28, 2014 the Central Bank issued a Consultation Paper (CP 85) indicating its intention to allow the establishment of Irish domiciled qualifying investor alternative investment funds (“QIAIFs”) which can engage in direct loan origination. Alongside the Consultation Paper sits a proposed new Chapter to the Central Bank’s AIF Rulebook to provide for such loan originating QIAIFs.

Please click HERE for our full briefing on this significant development for Irish Fund products.