Thomas Smith, Patricia Volhard, Alan Davies, Pierre Maugüé and Marco Paruzzolo
To compare the key EU regimes regulating direct lending by private funds.
Abstract
Purpose
To compare the key EU regimes regulating direct lending by private funds.
Design/methodology/approach
Provides a summary of the key factors to be examined when looking at the provision of direct loans by private funds in the key jurisdictions, followed by a summary of existing pan-European regulations, followed by a focus regulations in on the UK, Germany, France and Italy.
Findings
The liberalisation of the national regimes for loan origination by funds in many European Union jurisdictions is a welcome development for both credit fund sponsors wishing to access investment opportunities in these jurisdictions and the borrowers unable to secure adequate financing from traditional sources such as banks. At the same time, the creation of a pan-European regulatory regime, with a passport for lending activities, would further facilitate market access by loan originating funds, as long as such regime does not impose onerous burdens or unnecessary restrictions on the funds and their managers.
Practical implications
The article gives an insight on the relative opportunities for direct lending funds in the EU, and how best to structure to take advantage of them.
Originality/value
Practical guidance from experienced financial services lawyers