Options in mezzanine financing

Mezza­nine finan­cing refers to forms of capi­tal that lie between equity and debt in terms of their charac­ter, i.e. in some circum­s­tances they combine features of both. Mezza­nine provi­ders can be venture capi­tal compa­nies, banks, insu­rance compa­nies, private inves­tors or mezza­nine funds. Inves­tors bear a higher risk than debt inves­tors and can ther­e­fore expect a higher return than the latter. The return on finan­cing with mezza­nine capi­tal is between 10 and 30 percent, depen­ding on the terms and conditions.