Overview 
 

 

Mezzanine financing is an integral part of developed capital markets. It bridges the gap in a company’s capital structure between debt and equity.

Mezzanine Financing has a number of advantages for companies compared to the other traditional financing methods. These include:

Being less expensive than equity financing



It avoids dilution of equity: Shareholders continue to operate more independently than would be the case if additional investors had rights to the capital.

Cash flow based (as opposed to collateral based)

Ideal for smaller-size companies who have limited access to financing


Easy to implement and quick to execute which makes it attractive for the smaller-size companies

More flexibility than classic bank debt arrangements