Europe’s alternative source of business funding
The financial crisis caused liquidity problems for banks globally, with a knock-on reduction in access to capital for businesses. To address this challenge, regulators in Europe are introducing alternative sources of financing, and in particular, are implementing measures to allow investment funds to issue loans to businesses.
At a European level, the ‘European Long-Term Investment Fund’ (ELTIF) is being established, while Ireland has recently launched its own ‘Loan Originating Qualified Investor Alternative Investment Fund’ (referred to below as Irish Loan Fund (ILF). Both measures offer a regulated fund that originates loans to business, and in this article we compare the key features of each.
How can we help
Our teams of banking and tax experts can assist you with:
- Transaction support and transaction structuring;
- Valuation of loans and collateral;
- Advising on the transfer of loans from financial institutions to Loan Funds;
- Advising on the tax implications of purchasing and originating loans on a global basis, or any tax consequences of dealing with any realised collateral;
- Advising on the tax structuring of a Loan Fund.