The Central Bank of Ireland has set out new rules which allow alternative investment funds operating in Ireland to lend. Simultaneously, it has designed one of Europe’s first structured regulatory frameworks for private debt funds.
Many institutional investors may prefer a greater level of leverage, he said. Also, “clarification will be needed” on asset redemption and valuation requirements. The loan fund “limitation appears to be very prescriptive and further analysis should be carried to ensure that loan origination can be used in conjunction with other debt or credit strategies,” O’Sullivan said.