Key facts
- SMBC Nikko Securities is considering establishing a fund.
- The fund would provide mezzanine financing.
- One Investment Management is a potential partner.
- The fund's target size is $627 million.
Mezzanine financing is a hybrid form of debt and equity financing that allows companies to raise capital. It typically ranks below senior debt but above equity in terms of repayment priority. Such funds are often established by investment banks or asset managers to cater to specific corporate financing needs.