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.