MSIF Mezzanine Fund
The MSIF Mezzanine Fund is now fully invested however, AFM has negotiated an extension to some existing facilities totalling £3.4m which is available to invest up to March 2010. This money will provide businesses with loans from £150k.
An MSIF Mezzanine investment is a fixed term loan which has either a redemption premium or equity option attached to it. In most cases the Fund charges a premium on the loan.
Mezzanine finance enables borrowers to access funds in addition to conventional bank funding.
Mezzanine finance can bridge the gap between equity and debt funding and can make the difference between a transaction happening or not.
The Mezzanine Fund only invests in limited companies.
