A Borrower and a Lender Be: Irish Central Bank's Loan Origination Fund Rules

March 26, 2015

There has been an increasing focus within Europe on alternatives to bank-based credit.  Loan origination funds, which look to source loan assets for their investment portfolio by directly originating loans (rather than investing via loan participation or assignment), are a key component in addressing the funding gap that arises from an over-reliance on bank credit.  This article examines the Central Bank of Ireland’s Rules – contained in its AIF Rulebook – that apply to loan originating Qualifying Investor Alternative Investor Funds (AIFs).  The Rules were finalised following a lengthy consultation process. Included in the discussion below are comments regarding certain issues that arose during the consultation process.

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