The European Securities and Markets Authority (ESMA) is proposing new regulations for open-ended loan-originating alternative investment funds (AIFs) to enhance operational risk management. A consultation paper outlines additional requirements for these funds, which currently prefer closed-ended structures unless specific conditions are met. The consultation is open until March 12, 2025, with final regulations expected later that year. The proposed rules aim to balance financial stability with expanding access to private credit, allowing a broader range of investors to participate while addressing unique risks associated with open-ended AIFs. Managers will need to implement robust liquidity risk management and conduct regular stress tests.