Quasi-Equity

A form of financing that has characteristics of both debt and equity, such as mezzanine finance or convertible loans. Used to fund leasing companies or large asset acquisitions. Example: A Kenyan leasing startup raises KES 50,000,000 through a convertible note from an impact investor. The investor earns interest like a lender but can convert the debt into company shares if the business hits revenue targets — blending debt and equity features.