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Direct lending by funds: a comparison of the key EU jurisdictions

Thomas Smith (Debevoise and Plimpton LLP, London, UK)
Patricia Volhard (Debevoise and Plimpton LLP, London, UK)
Alan Davies (Debevoise and Plimpton LLP, London, UK)
Pierre Maugüé (Debevoise and Plimpton LLP, London, UK)
Marco Paruzzolo (Chiomenti Studio Legale, London, UK)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 6 November 2017

117

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

Keywords

Citation

Smith, T., Volhard, P., Davies, A., Maugüé, P. and Paruzzolo, M. (2017), "Direct lending by funds: a comparison of the key EU jurisdictions", Journal of Investment Compliance, Vol. 18 No. 4, pp. 59-66. https://doi.org/10.1108/JOIC-08-2017-0059

Publisher

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Emerald Publishing Limited

Copyright © 2017, Debevoise & Plimpton LLP

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