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FR - Loans granted to businesses by some AIFs

01/01/2017

Decree No. 2016-1587 setting down the conditions under which professional specialised funds and professional private equity funds can provide loans to businesses was published in the French Official Journal on 26 November 2016.

Decree No. 2016-1587 setting down the conditions under which professional specialised funds and professional private equity funds can provide loans to businesses was published in the French Official Journal on 26 November 2016. The decree specifies the eligibility conditions applicable to French and European management companies to provide loans and the possible beneficiaries of these loans, in particular single-person businesses or private legal entities whose principal activity is a commercial, industrial, agricultural, artisan or real estate business to the exclusion of financial activities and collective investments. Furthermore the decree limits the ability to apply leverage and sets restrictions on unit or share redemption possibilities.