As summarized in previous Dechert OnPoints1, Germany has introduced a framework for direct lending funds in March 2016 by enacting the UCITS V Implementation Act (the "Act").2 The changes implemented by the Act also allowed certain non-German (particularly EU) funds to enter the German direct lending market. The revised regulatory framework has triggered a substantial interest in the debt fund industry, particularly in relation to foreign funds engaging in lending activities with German borrowers. Furthermore, institutional investors continue to show growing interest in this asset class and seem receptive to invest in attractive debt fund strategies.

Read "Direct Lending Funds in Germany- Proposed Compliance Guidelines"