Hybrid financing that bridges debt and equity for optimal growth
Mezzanine capital is a hybrid form of financing that combines debt and equity features, providing businesses with flexible capital solutions for growth, acquisitions, and expansion.
Strategic advantages of hybrid financing
Combines debt security with equity upside potential
Access to more capital than traditional debt financing
Maintain operational control while accessing growth capital
Accelerate business growth and expansion initiatives
Aligned interests between borrower and lender
Multiple exit options and refinancing opportunities
When mezzanine capital makes strategic sense
Bridge financing gaps in M&A transactions and leveraged buyouts
Fund expansion, new markets, product development, and operational scaling
Restructure existing debt and optimize capital structure
Support management teams in acquiring business ownership
Where mezzanine capital fits in the financing hierarchy
Traditional bank loans and secured debt with highest priority
Subordinated debt with equity features and warrants
Common and preferred equity with lowest priority
Common mezzanine capital terms and features
How to secure mezzanine financing
Evaluate business model, cash flow, and growth potential for mezzanine financing
Identify mezzanine lenders who specialize in your industry and transaction size
Design optimal financing structure with debt and equity components
Comprehensive business review, financial analysis, and legal documentation
Execute financing agreement and receive capital infusion
Connect with mezzanine lenders who can provide flexible growth capital