Alternative Investments

Mezzanine Debt

Definition

What is Mezzanine Debt?

Subordinated financing that sits between senior debt and equity and may include equity-linked features.

Example in practice

A buyout uses mezzanine debt to complete its financing.

Keep learning

A company that finances producers in exchange for a percentage of revenue or output.

A financing arrangement granting the investor the right to buy part of future production at a predetermined price.

Non-bank lending to privately held companies or assets.

An investment combining debt and derivatives to create a defined payoff.

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