Publication of new perspectives on mezzanine finance for small cap SMEs in emerging markets

In search for new models to provide risk capital, mezzanine finance, which blends elements from traditional Private Equity (PE) and debt financing into a unique product, provides an additional offer in the SME finance ecosystem for missing middle entrepreneurs.

As a relatively young and rather complex segment in the impact investing space, the commissioned study "New perspectives on financing small cap SMEs in emerging markets: the case for mezzanine finance" provides an understanding of the particulars, diversity (and complexities) of it, critical to spur innovative thinking on both the fund managers and investors sides so products may be improved and models may be more scalable.

This study is the first of its kind and represents a first step into building small cap SME mezzanine finance as an asset class on its own.