Based on the adopted text, the key changes are as follows:
Loan-originating funds
The AIFMD II defines a loan-originating alternative investment fund (AIF) as an AIF: (i) whose investment strategy is mainly to originate loans; or (ii) where the notional value of the AIF’s originated loans represents at least 50% of its net asset value.
Under AIFMD II, the loan-originating funds will be governed by the following rules:
- Loan-originating AIFs are encouraged to be closed-ended (i.e., no redemption right for the investors), unless the alternative investment fund manager (AIFM) demonstrates compatibility with the investment strategy and redemption policy, with the European Securities and Markets Authority (ESMA) developing draft regulatory technical standards for open-ended AIF compliance requirements.
- Leverage limits for loan-originating AIFs are set at 300% for…
