Set Up or Market a Loan Fund in Germany and Across Europe

Foreign fund managers and sponsors seeking to market a loan fund or private debt fund in Germany must navigate the German and European rules governing cross-border distribution of AIFs. Depending on the fund’s domicile, investor base and AIFM structure, access to the German market may be available through the European AIFMD marketing passport or require a separate notification or marketing procedure with BaFin. Kronsteyn advises EU and non-EU fund managers on the cross-border marketing of loan funds in Germany, including AIFMD passporting, BaFin notifications, pre-marketing, distribution documentation and the regulatory requirements applicable to professional, semi-professional and retail investors.

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Kronsteyn also advises fund sponsors seeking to set up a loan fund in Germany. Following the implementation of AIFMD II, German AIFs benefit from a substantially broader regulatory framework for loan origination and direct lending, while loan-originating AIFs are subject to specific requirements concerning credit processes, risk management, leverage and, for open-ended funds, liquidity management. As a German law firm specialising in investment funds and BaFin regulation, we advise on fund structuring, the selection of the appropriate AIF and AIFM structure, regulatory authorisation and registration, fund and lending documentation, and the establishment and distribution of loan funds, debt funds and private credit funds in Germany.