16.07.2026
Private credit in Austria just got a dedicated legal home. On 7 July 2026, the Austrian National Council passed the bill transposing AIFMD II into Austrian law. For AIF-managers, the message is clear: the rules have caught up with the market. The question now is how to make the most of them.
A Framework Built for Private Credit
For years, loan origination through AIF structures operated in a grey zone. Licensed AIF-managers navigated a patchwork of FMA practice and a narrow Banking Act exemption, with no dedicated AIFMG provisions to rely on. The reform introduces a harmonised framework for AIF loan origination – with clear structural parameters on leverage, borrower concentration, and loan retention, while consumer lending by AIFs is prohibited outright.
More Tools, Broader Business Lines
Beyond loan origination, the reform delivers a broader commercial toolkit. Two new ancillary services – benchmark administration and credit servicing – are now available to licensed AIF-managers. The pre-existing requirement to hold a portfolio management licence before adding other ancillary service licences is gone, removing a structural barrier that constrained business expansion. Managers with developed operational platforms now have a clearer path to offering those capabilities to third-party clients.
One Question the Reform Leaves Open
The new framework is clear for licensed AIF-managers. For registered managers operating below the licensing thresholds, the picture is more nuanced: the reform does not resolve whether they may originate loans without a separate banking licence, or whether the Banking Act exemption extends to them. That regulatory gap remains open, and managers in this category should seek specific advice before proceeding.
What Comes Next
The bill moves to the Federal Council, which is scheduled to consider it on 16 July 2026. Once promulgated, the provisions will enter into force on the dates set out in the legislation. Pre-2024 loan-originating AIFs benefit from a transitional period until 16 April 2029 – but that window comes with strict conditions: existing exposures above the new limits cannot be increased, and those below cannot be raised to exceed them. Now is the time to review portfolios and plan for orderly adjustment.
