The European Securities and Markets Authority (ESMA) is consulting on draft regulatory technical standards (RTS) for loan-originating Alternative Investment Funds (LOFs) under the revised AIFMD2. The RTS requires LOFs to demonstrate a compatible liquidity risk management system to maintain an open-ended structure. Key regulatory requirements include a robust liquidity-management system, availability of liquid assets, and a suitable redemption policy. The consultation is open for feedback until March 12, 2025, with final RTS expected by late 2025. Notably, these provisions will also impact firms authorized under UK AIFM rules, especially those marketing in the EU.