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What Is Mezzanine Finance?

Expensive if you need it. Risky if you are supplying it. Popular amongst Developers in NZ (Pre 2008) ┬áBasically it is debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinate to debt (first mortgage) provided by senior lenders such as Banks, Finance Companies and Venture Capital companies. Sort of a sandwich filling… Like sardines if you like!