Abstract

European banking law restrictions have so far prevented “alternative lending solutions”, such as debt funds and crowdlending platforms, to operate on a Pan-European scale. Consequently, crowdlending platforms currently do not benefit from a European passport and are restricted in attracting investors and projects on a cross-border basis. Regulation (EU) 2020/1503 (the “CFR”), which will enter into force in November 2021, will change this. As debt funds face similar restrictions in originating loans on a Pan-European basis, this contribution analyzes the opportunities for debt funds and their alternative investment fund managers (“AIFMs”) offered by the CFR.

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