In 2009, Investcorp launched a new business initiative that will focus on mezzanine debt financing in the Middle East North Africa (MENA) region and Turkey. 

Momentum is continuing to build for mezzanine financing in MENA and Turkey as private equity and corporates seek to finance their regional growth plans.  Mezzanine instruments have already been used in countries such as Turkey and the UAE and are increasingly being considered by some entities in other countries in the region.

Investcorp believes that an attractive environment exists for significant growth in this type of financing both in the short and medium-term, which will enable mezzanine financing to develop into an established asset class, as is the case today in developed markets such as the US and the UK and other European countries.

This initiative will be independent and managed separately from Investcorp's Gulf growth capital (GGC) business, which makes private equity investments in the MENA region.

The Mena Mezzanine fund's investment focus will be on mezzanine instruments, preferred equity securities, bridge loans, high yield debt securities and other similar income producing securities and obligations that also provide investors with equity upside.

The senior contingent of the investment team is already in place and has been staffed with a group of experienced professionals with complementary backgrounds in investment management, international banking and private equity.