SMBC Nikko Securities is considering setting up a mezzanine financing fund to support Japan’s mergers and acquisitions market, according to reports from Japan Times and Bloomberg. The proposed offering would provide “mezzanine” financing, a type of funding that sits between senior debt and equity in the capital structure, typically involving higher risk than senior lending but potentially offering additional return compared with pure debt. Bloomberg reports that SMBC Nikko is in discussions with One Investment Management about establishing a fund sized at about $627 million. The Japan Times report cites a prospective fund scale of roughly ¥100 billion. Both accounts link the idea to Japan’s ongoing M&A and broader capital-markets activity, where mezzanine products can be used to help bridge financing gaps for transactions. The reports describe the plan as under consideration, with no final decision or launch timeline reported. Details such as investment criteria, target borrowers, and final fund size are not confirmed in the available reporting.