Mezzanine financing is designed to fill the gap between the amount the senior lender will provide and the amount of equity capital the owners or buyers are willing to commit. Mezzanine financing is typically issued in the form of subordinated debt with equity participation.
Investment Size
- $2 to $15 million
- Ability to arrange senior financing
Types of Investments
- Subordinated debt , typically interest only, with principal due in 5-7 years (a portion of the interest may also be accrued and deferred)
- Subordinated debt with a warrant
- Common or preferred equity, typically in combination with a subordinated debt investment
Transaction Types
- Acquisition and growth financings
- Management buy-outs
- Shareholder liquidity and recapitalizations
- Corporate divestitures
- Employee Stock Option Plan(ESOP) Financings
- Sponsored transactions
- Unsponsored transactions
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