Business Capital
Mezzanine Capital
Access subordinated debt financing for growth, acquisitions, and recapitalizations. Higher amounts than traditional loans with flexible terms and equity participation options.
What is Mezzanine Capital?
Mezzanine capital is a hybrid form of financing that combines debt and equity features. It sits between senior debt and equity in the capital structure, providing higher amounts than traditional loans while offering flexible repayment terms.
This type of financing is typically used by established businesses with strong cash flow and growth potential who need capital for expansion, acquisitions, or recapitalizations but want to avoid diluting ownership through pure equity financing.
Key Benefits
Common Uses for Mezzanine Capital
Business Expansion
Fund organic growth initiatives, new markets, and product development
Acquisitions
Finance strategic acquisitions and add-on purchases
Recapitalizations
Restructure existing debt and optimize capital structure
Management Buyouts
Fund management-led buyouts and ownership transitions
Capital Expenditures
Finance major equipment purchases and facility improvements
Working Capital
Support growth-related working capital needs
Mezzanine Capital Structure
Subordinated Debt
Ranks below senior debt but above equity in the capital structure. Higher risk for lenders means higher rates but more flexibility.
Equity Features
Often includes warrants or equity participation to share in upside potential and align interests between borrower and lender.
Flexible Terms
Longer maturities, interest-only periods, and balloon payments allow for growth-focused repayment structures.
Higher Amounts
Can provide 2-4x EBITDA in financing, significantly more than traditional senior debt limits.
Typical Terms
Mezzanine Capital Requirements
EBITDA
Minimum $1-2 million in annual EBITDA for most lenders
Growth Potential
Clear path to growth and strong market position
Management Team
Experienced management team with proven track record
Financial History
Strong financial performance and cash flow stability
Ready to Get Mezzanine Capital?
Get the flexible financing you need for growth, acquisitions, and recapitalizations. Connect with mezzanine capital providers today.