Lending by funds – Welcome clarification for registered KVGen companies regarding shareholder loans

The amendment to the AIFMD (Alternative Investment Fund Managers Directive – AIFMD 2.0) brings about far-reaching changes for fund managers, particularly with regard to lending by funds managed by capital management companies (KVGen). Originally, these European legal requirements were to be implemented by the Fund Market Strengthening Act (FMSG). With the FMSG, the German legislature would have significantly tightened the existing framework and extended it to only registered KVGen – with potentially adverse consequences for smaller market participants and Germany as a fund location overall.