Hungarian capital markets reshaped as AIFs step into loan origination, credit servicing and credit acquisition

Amendments to the Hungarian Act on Collective Investment Forms and Their Managers (Hungarian AIF Act) will take effect on 16 April 2026. The amendment will transpose EU Directive 2024/927, which amends Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD), into Hungarian law. 

Under the current regulatory framework, loans cannot originate from investment funds. Only venture capital and private equity funds are permitted to grant loans, and solely in the form of shareholder loans. From 16 April 2026, however, all alternative investment funds (AIFs) will be able to obtain a licence for loan origination, and for credit servicing and credit acquisition activities. AIFs can also be established for the specific purpose of originating loans.

The ability of AIFs to provide loans opens up new funding channels for borrowers that may not have access to traditional bank financing while broadening the business scope available to fund managers. Fund-originated loans may prove particularly attractive to borrowers seeking greater flexibility, faster execution or a willingness to assume higher levels of risk.

Loan origination as a new AIF activity

Under the new regime, the concept of loan origination includes the direct granting of loans by the AIF as the original lender, and also indirect lending carried out through a third party or a special-purpose vehicle on behalf of the AIF. The new rules give AIFs the flexibility to participate in financing transactions, including through indirect structures such as an entity owned by the AIF.

The new regulatory framework, however, imposes detailed risk management, leverage and liquidity management requirements on AIFs engaged in loan origination activities.

The loan-originating fund as a new form of AIFs

Under the new regime, AIFs can also be established as the following type of "loan-originating AIFs": 

• funds whose investment strategy is mainly to originate loans; or 
• funds whose originated loans have a notional value representing at least 50% of their net asset value.

Generally, a loan-originating AIF must be closed-ended. It can only be open-ended where its alternative investment fund manager (AIFM) demonstrates to the supervisory authority (i.e. the National Bank of Hungary) that the AIF's liquidity risk management system is compatible with its investment strategy and redemption policy.

Shareholder loans also subject to regulation

Since loan origination will become a separately licensable activity, venture capital and private equity funds that intend to continue originating shareholder loans through AIFs will also need to obtain the relevant licence.

The amendment introduces a formal definition of shareholder loans, which covers any loan granted by the fund to an undertaking in which it holds, directly or indirectly, a qualifying holding of at least 5%. A shareholder loan is closely tied to the underlying ownership interest and can not be transferred independently of the holding.

Shareholder loans will be subject to lighter administrative and leverage requirements than those applicable to loan-originating AIFs.

Hungary-specific features

The EU’s amending directive allows member states to restrict or prohibit AIFs from granting loans to consumers or from carrying out credit servicing activities in relation to consumers. Hungary has opted for the strictest approach and has fully prohibited AIFs from originating loans to consumers or engaging in credit servicing activities for consumers. This prohibition, however, does not affect the marketing of units or shares of an AIF that has been licenced to originate loans in another member state.

In addition, Hungary has exercised the option provided by the amending directive to prohibit AIFMs from originating loans where the investment strategy is limited solely to the assignment of receivables to third parties.

Uncertainty around licensing requirements

It raises concerns however that the law is still missing which would specify the exact conditions that an AIFM must meet in order to obtain a licence for loan origination, credit servicing or credit acquisition activities, as well as the framework of the licensing procedure. This regulatory gap creates significant uncertainty for market participants seeking to obtain such a licence, as it remains unclear what documentation and practical steps will be required to be satisfied as part of the licensing process. 

Transitional provisions

The Hungarian AIF Act contains transitional provisions, applicable until 16 April 2029, that provide a temporary framework for compliance with certain new prudential requirements for AIFs established before 15 April 2024 and engaged in the provision of shareholder loans. 

These provisions do not address whether loan origination on behalf of an AIF — now becoming a separately licensable activity — may continue during the transitional period without a licence since they do not expressly refer to loan origination as a licensable activity. 

It remains unclear whether, under an existing shareholder loan facility, an AIF acting as lender may disburse loan amounts following a drawdown by the borrower after 16 April 2026, or whether such disbursements must be deferred until the AIFM has obtained the relevant licence to carry out loan origination activities.

For more information on this amendment to the Hungarian AIF Act, contact your CMS client partner or the CMS experts who contributed to this article. 

This article was co-authored by Viktória Dorusák.