Misconceptions about the risks and structuring possibilities
involved in emerging market mezzanine are limiting
investors’ ability to tap lucrative opportunities
they wouldn’t otherwise be able to access.
EMPEA. Click to enlarge
It’s proving somewhat of a missed opportunity
for mezzanine providers, as well as growing businesses in
developing economies that are not able to obtain bank
According to the Emerging Market Private Equity Association
(EMPEA), as at April 2014 the
proportion of emerging market-focussed general partners
providing mezzanine finance ranged from 1.2% to 2.6%.
Misunderstandings about the asset class, plus a lack of
competition among private equity firms, means capital
structures are not being optimised through the inclusion of a
"I am actually disappointed about the market's development
over the past two years," said Joachim Schumacher, senior
director at German development bank DEG speaking on an EMPEA
webinar this month. "There has...