Investment Policy – Mezzanine
Introducing Mezzanine Fund investment policy
What is a Mezzanine Fund?
Mezzanine is a Latin word meaning “between two floors,” and financing that lies between bank borrowings (senior finance) and the issuance of common stock (equity finance) is called “mezzanine finance.”
Investment generally takes place in the form of non–voting class shares, subordinated loans, or subordinated debt, etc.
Investment Policy
We provide financing that cannot be handled under ordinary bank loans or common stock increases and fund is recovered from profit that is accumulated over a certain period once the investment has been made, or through refinancing.
Investment Targets
Companies that can be expected to show stable cash flows
Key Investment Models
- Enhancing capital through class shares (without voting rights) in under–capitalized companies that have difficulty raising funds.
- Diversifying funding procurement for companies with demand for growth capital.
- Restructuring of capital and shareholder composition in business successions and hostile takeovers.
- Procurement of funds for buyout deals using mezzanine finance.