Mezzanine debt provides subordinated financing that fills the gap between senior debt and equity. It is often used for acquisitions, growth capital, or large real estate projects where traditional financing alone is not sufficient. This type of funding is structured as debt but may include equity-like features such as warrants or conversion rights.
We help clients secure mezzanine capital through lenders that understand layered capital stacks and complex deal structures. These solutions offer flexible repayment terms and support large-scale strategies that cannot be funded through conventional loans alone.
Mezzanine debt adds strategic capital without giving up full control or requiring immediate equity dilution.
Common Use Cases for Mezzanine Debt
Clients use mezzanine capital to supplement senior loans during business acquisitions or management buyouts, enabling larger transactions with less equity.
Large-scale construction or redevelopment efforts often include mezzanine layers to close financing gaps between senior loans and equity contributions.
Established companies access mezzanine debt to fund expansion, enter new markets, or invest in large capital projects without giving up ownership.
Mezzanine financing is used in corporate recapitalizations or to refinance complex capital structures that require flexible subordinated debt.
Mezzanine Financing Insights
Mezzanine capital providers assess sponsor strength, enterprise value, and repayment capacity. Unlike traditional lenders, they are comfortable with higher risk in exchange for potential returns through interest, fees, or upside participation.
Our approach includes:
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Identifying capital gaps and evaluating stack alignment
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Structuring repayment schedules and covenants with sponsor goals in mind
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Coordinating with senior lenders to ensure compliance with intercreditor agreements
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Connecting clients with experienced mezzanine funds that align with the deal size and strategy