TOKYO Nov 21 Nomura Holdings Inc,
Japan's largest brokerage, and the UK's Intermediate Capital
Group Plc, have agreed to form a joint venture to
provide mezzanine debt to be used for acquisitions.
Nomura and ICG will set up a new company and each will
inject 10 billion yen ($100 million)into the fund, they said in
a joint statement on Thursday.
Mezzanine debt is commonly used by private equity firms,
which typically use leverage for acquisitions. Mezzanine debt
comes between senior debt and equities, meaning providers of the
mezzanine debt get higher yields than senior debt providers.
The new company will also seek money from institutional
investors to form the fund.
"This agreement will bring Japanese institutional investors
the opportunity to access mezzanine via a fund structure," said
ICG Chief Executive Officer Christophe Evain in the statement.
Any future funds structured as a result of the agreement
will be jointly seeded, distributed and co-managed between
Nomura and ICG, they said.