The ESMA Consultation Paper, published on December 12, 2024, outlines regulatory standards for open-ended loan-originating AIFs (OE LO AIFs) under the AIFMD. It emphasizes effective liquidity risk management to maintain an open-ended structure, following AIFMD II’s reforms for credit fund managers. Key areas include sound liquidity management, where AIFMs must tailor redemption policies and maintain a proportion of liquid assets; liquidity stress testing on a quarterly basis; and ongoing monitoring of liquid assets and cash flows. ESMA invites market participants to provide feedback by March 12, 2025, to refine the final regulations.