Mezzanine Finance
Hybrid financing that combines debt and equity features, providing flexible capital for growth, acquisitions, and development projects.
What is Mezzanine Finance?
Mezzanine finance is a hybrid form of financing that combines elements of debt and equity. It typically involves higher interest rates than traditional debt but offers more flexibility and potential upside participation through equity kickers or conversion features.
Growth Capital
Fund expansion, acquisitions, or major capital expenditures without diluting existing equity holders.
Flexible Structure
Customizable terms including interest rates, repayment schedules, and equity participation features.
Medium Term
Typically 3-7 year terms, providing stability while allowing for business growth and value creation.
Risk Mitigation
Lower risk than pure equity while offering higher returns than traditional debt financing.
Mezzanine Finance Features
Loan amounts from $5M to $100M+
Interest rates typically 12-20% per annum
Equity participation through warrants or conversion rights
Interest-only payments during growth phase
Subordinated to senior debt but senior to equity
Flexible repayment terms and structures
Recent Mezzanine Finance Case
Commercial Development Project
$25M mezzanine facility for a mixed-use development project requiring gap funding between senior debt and equity.
The mezzanine facility provided the developer with the flexibility to complete the project while maintaining control and maximizing returns.
Ideal For
Mezzanine finance is particularly suitable for specific business situations and growth scenarios.
Growth Companies
Established businesses looking to expand operations, enter new markets, or fund major capital expenditures.
Property Developers
Development projects requiring gap funding between senior debt and equity, particularly for complex or large-scale projects.
Acquisition Financing
Management buyouts, leveraged buyouts, or strategic acquisitions where additional capital is needed beyond traditional debt.
Need Growth Capital?
Submit your mezzanine finance requirements today and discover how hybrid financing can accelerate your growth.