The Central Bank has updated its rules for Lending Funds (or "LQIAIFs") which enable broader credit focussed investment strategies for LQIAIFs. Previously certain assets and investments had to be "related" to the core lending activity, but now LQIAIFs have a broader ability to originate loans and invest in credit and debt instruments. The Central Bank has also clarified that derivatives cannot be used by LQIAIFs other than for hedging.
The changes are reflected in an updated Paragraph 2 of Section 4 within Chapter 2 of the AIF Rulebook (Qualifying Investor AIF Requirements) and revisions to the LQIAIF section of the Twenty-Ninth Edition of the AIFMD Q&A.
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