Use cases
Where it fits.
The capital
How it is structured.
Mezzanine fills the gap between senior debt and equity. We size it to the risk layer, set returns and covenants, and place it with funds that underwrite the sector.
- Subordinated to senior debt
- Flexible return structures
- Sponsor alignment
Sectors
Related sectors.
FAQ
Questions.
The questions we answer most often. Every structure remains subject to lender approval and due diligence.
When is mezzanine used?
When senior debt caps out and equity alone cannot fund the gap, or when the sponsor wants to reduce dilution.
Who provides it?
Private debt funds, development finance institutions and specialist mezzanine investors.
How is it priced?
For the subordinated risk, with a cash coupon, a return element and covenants that align the sponsor.