Mezzanine lenders struggling to generate yield in today's competitive middle-market lending environment may want to consider putting their money to work overseas. Mezzanine debt in the Asia-Pacific region provides an opportunity to bring in returns. Mezzanine activity there slowed after the financial crisis, which has created an opening for lenders today.
Mezzanine lenders with established global operations should consider countries in the Asia-Pacific region for lending opportunities, such as Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea and Taiwan, according to Charlotte, North Carolina-based lender Babson Capital Management. (For more on M&A in emerging markets, see 10 Emerging Markets to Watch.)