Private credit in Ireland

The global private credit market has experienced remarkable growth and Preqin forecasts it will reach $2.8 trillion by 2028. Ireland has already established itself as a key player in this asset class, with $169bn in private credit assets being managed and/or serviced in the country.

AIFMD 2 introduces a suite of pan-European loan origination rules, which will result in a relaxation of the direct lending rules applicable to the Irish Loan Origination QIAIF (“L-QIAIF”) regime. The harmonised loan origination rules are applicable without any grandfathering provisions to all direct lending funds established in any EU Member State since 15 April 2024, and will provide private credit managers with greater flexibility and choice when selecting their fund domicile. Furthermore, AIFMD 2 anticipates the introduction of a pan-European loan origination passport, which is intended to remove cross-border barriers to direct lending in Europe.

As Europe's direct lending assets under management (AUM) are expected to double over the next five years, AIFMD 2 arrives at a critical time, offering private credit managers enhanced opportunities in the European market. These regulatory changes not only expand Ireland’s role in the growing private credit sector but also position the country to meet the increasing demand for investment in this key asset class.

In this article, we explore the evolving landscape of private credit, the regulatory opportunities arising from AIFMD 2, and why private credit is a key opportunity for the Irish funds industry. Read here.

How IQ-EQ can help

IQ-EQ team includes bankers with buy/sell side experience, loan administrators and analysts coming from credit and debt managers aswell as banks and servicers and fund and corporate administrators with extensive debt experience. We have substantial expertise in establishing, managing and administering private credit funds in various jurisdictions, including Ireland, Luxembourg and Italy.

Our experience includes managing and administering private credit funds that have originated/ invested in credit exposures across the EEA and USA. Strategies managed include – Direct Lending, ABS, Mid-Market, Real Estate, SME, Distressed Debt, Shipping Debt, Corporate Turnaround and Fund of Funds.

We have in-depth working knowledge of the CBI’s rules for L-QIAIF’s and can provide related guidance, including assistance with the finalisation of related policies and procedures.