Ireland set to become more attractive for private credit funds

Ireland may see increased interest from alternative lenders if the Central Bank of Ireland (CBI) implements proposed updates to its AIF Rulebook. The reforms focus on loan originating funds, a growing source of private credit across Europe, and aim to align domestic rules with the upcoming EU AIFMD II requirements.

Key proposals include removing Ireland-specific restrictions on loan origination AIFs, allowing non-EU managers to oversee Irish-domiciled QIAIFs, and introducing greater flexibility in borrower types and asset exposures. The changes are expected to harmonise the EU market and enhance Ireland’s competitiveness as a fund domicile.

Additional amendments would ease governance and financing constraints. The CBI plans to relax rules on wholly-owned subsidiaries, permitting more efficient use of intermediary vehicles, and remove restrictions on QIAIFs granting loans or acting as guarantors, supporting fund financing arrangements such as cross-collateralisation.

Proposed updates also address shareholder treatment and warehousing. The “equal treatment” requirement would be replaced with a fairness standard that accommodates investor-specific arrangements, while rules limiting the price of warehoused assets and initial offer periods for certain QIAIF strategies would be lifted.

Firms have until 5 November 2025 to respond to the consultation, presenting an opportunity for market participants to shape a regulatory framework that could significantly expand Ireland’s private credit and alternative fund landscape.

Explore the full analysis to understand the opport unities these reforms may unlock.