Typically for organic growth, including additional plant capacity, capex upgrades and new product lines
Typically inorganic growth to acquire a new business or competitor
Plug short term liquidity needs
Provide re-financing when traditional bank financing and capital markets remain shut
Stressed companies in need of rehabilitation and turnaround
Investors in Asia are usually minority equity holders and have limited rights. Structuring improves the alignment of interests.
As middle market companies are increasingly starved of capital, there are increasing opportunities to invest utilising mezzanine and structured instruments.