MCo manages investor funds through investing into companies via mezzanine finance. Our mission is to provide investors with medium-risk, medium-return investment opportunities and provide companies with new financing means and financial solutions to manage capital, thereby connecting both parties and contributing to Japan’s growth and development.
Pros & Cons of
Costs for mezzanine financing are higher than interest rate levels of contract bank loans; however, financing is designed with the combination of 1) cash payments of dividends and interest, and 2) PIK, or lump-sum payments of interest and dividends. By adjusting 1) and 2) in line with the operational cash flow, companies can reduce the amount of cash payments during the loan period.