This new segment was added in 2007. ICICI Venture is a first mover in Mezzanine in the Indian PE industry. The India Advantage Fund VII (Mezzanine Fund I) is conceptualized as a USD 51 million fund that would focus on Mezzanine investment opportunities. The fund has already concluded its first few investments.

Mezzanine finance typically is a structured debt like instrument, with a component of cash income and benefits from potential upside return from equity kickers. It often bridges the gap in corporate capital structure between senior debt and equity. Mezzanine offers flexibility to meet both the investor’s and investee company’s requirements and also provides medium to long term capital without significant ownership dilution.