The German Parliament passed the bill for the new German “OGAW-V-Umsetzungsgesetz” on January 28th 2016, implementing not only UCITS regulations but also extending the scope of permitted investments in and originating of loans by German AIFs. In this regard open-ended Spezial-AIF will be allowed to restructure and prolong loan-investments as well as to invest into secondary loans without certain limits. While the initiating proposal of the new bill only allowed closed-ended funds to perform such loan management, the amendments of the bill should have a positive impact on the German fund-market.
Furthermore closed-ended AIFs may – under certain conditions - also act as loan originators. A more detailed newsletter on this topic will follow shortly.
Also the scope of investors qualifying as semi-professional investors was extended to certain public institutions.
Read the underlying proposal and report of the German Financial Committee of the Bundestag.