While mezzanine capital is broadly used in developed markets, its nascent availability is increasing in frontier markets. A hybrid product that is positioned between senior debt and equity in a company’s capital structure, mezzanine is a subordinated, non-amortizing, long-term loan, and usually contains a component of equity upside.
Mezzanine funding often fills the gaps between available debt capital provided by lenders and equity provided by private equity funds or other sponsors. Uses of this type of flexible financing typically includes growth funding, recapitalizations, leveraged buyouts, and management buyouts.
New Frontier’s relationships with the emerging group of global mezzanine funds increases the financial options available to our clients.