Ireland key domicile in private credit market
Ireland is strengthening its position as a leading domicile for private credit funds, according to new research.
The study, by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), and global law firm Dechert, highlights that nearly a third of private credit managers are now forming funds in Ireland.
’ adds that this figure expected to rise further due to upcoming regulatory changes and tax-treaty advantages.
The study draws on insights from 50 private credit managers overseeing approximately US$1.5 trillion in assets.
A key finding is the increasing use of Ireland as a fund domicile, driven by both regulatory reform and tax efficiency.
Managers are particularly attracted by the benefits offered under the US-Ireland double-tax treaty, which can reduce US withholding tax and address complex tax issues such as Effectively Connected Income (ECI).
With the Central Bank set to overhaul its AIF Rulebook and adopt without additional domestic requirements (‘gold-plating’), Ireland is positioned to attract even more global private credit capital.
Dan Morrissey, of Dechert in Dublin, said: “There has been a consistent increase in the use of treaty-based structures in recent years, with managers seeking to take advantage of Ireland’s tax treaty with the US by domiciling their fund and downstream structures in Ireland.
Popular domicile
“This has helped Ireland remain a popular fund domicile for private credit managers. Looking forward, this popularity is expected to increase with confirmation from Ireland’s Central Bank that its existing regime for loan-originating funds will be replaced entirely by AIFMD II.”
Beyond domicile selection, the report uncovers significant shifts in how managers structure private credit funds. Investors are increasingly demanding liquidity, co-investment opportunities, and tailored solutions — challenging the traditional closed-end, illiquid model of private credit.
According to the study, 64% of managers reported a rise in investor demand for liquidity — up from 49% in 2023.
In response, two-thirds of managers now offer at least one vehicle with some form of periodic redemption.
Meanwhile, co-investment appetite has surged, with 92% of managers seeing increased investor interest in the past year, compared with around 70% in 2023.
Retail participation
Retail participation is also on the rise, with over 50% of private credit managers currently serving high-net-worth or retail clients.
Two-thirds are actively targeting retail capital for new fund launches.
Alongside Ireland, Luxembourg, the Cayman Islands and the US remain top fund domiciles, with many managers running parallel vehicles to meet investor preferences.
However, Ireland’s regulatory clarity and tax advantages are increasingly setting it apart in a fast-evolving private credit landscape, the report concludes.