Advent International’s latest loan transaction is groundbreaking on many fronts – it’s the first to share similarities with a masala bond, an equity derivative and a margin loan. But it’s also the latest example of a growing trend that sees private equity firms launch bespoke ways to secure new financing.

Private equity has had a rebirth in the Indian market in the past 12 to 18 months. Compared to other so-called growth markets, the Asian country is politically stable, and benefits from good liquidity and a growing pool of private companies.

The Indian government has regulated the offshore financing market tightly, with a majority of companies prevented from raising funding or borrowing money abroad until recently. The use of shares in an Indian corporate to raise debt was prohibited until last year.

The US investment giant’s synthetic margin loan facility is the first in India to monetise listed...