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Bailey McCann, Opalesque New York:

The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released regulatory notice. Ireland created a direct lending fund vehicle in 2014, but the structure was largely unused in part because the types of investments these vehicles could engage in were limited. Now, under the newly amended rules, direct lending funds will be able to invest in both debt and equity securities within the entities that they are lending to.

The move has been hailed by the investment community in Ireland and Europe. "The changes will encourage more international fund managers to do business here in Ireland," said Pat Lardner CEO of Irish Funds a trade association that represents the funds industry in Ireland.

With the change, Qualifying Investor Alternative Investment Funds (QIAIFs) will be able to engage in operations relating to the business of issuing loans, participating in loans and participations in lending. This language effectively lifts the restriction on the types of activities fund managers can do and also allows for the investments in debt and equity. In all, the changes will allow for direct lending funds that more closely resemble some of the private credit vehicles on offer in other jurisdictions.

The change also brings QI......................

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