On December 12, 2024, the European Securities and Markets Authority (ESMA) published a consultation paper on draft regulatory technical standards (RTS) for open-ended loan-originating alternative investment funds (LO AIFs) under the AIFM Directive II. The Amending Directive was finalized on March 26, 2024, with EU Member States required to implement changes by April 16, 2026. ESMA’s consultation remains open until March 12, 2025. AIFMD II introduces LO AIFs as a new fund category, allowing open-ended structures if liquidity risk management is proven. The RTS aims to establish a harmonized regulatory framework for these funds, enhancing the private debt market.