Mezzanine funding

Use of mezzanine funding

Mezzanine funding is often used as a substitute of the needed equity or a bank loan in acquisitions and development projects. The capital provided by us is usually used in the following situations:

Refinancing - change in the structure of the current financing. Short- and mid-term bank loans are substituted by a mezzanine (longer maturity of the loan, more liquidity for the instant development),

Development capital - new capital to a company to support its further growth (for example by means of establishing a new branch, acquisition of a supplier / competitor, expansion to new markets …),

Management buy-out - outstanding capital to the company management to take over the company from its original owner,

Leveraged buy-out - outstanding capital to a company or an investment fund to acquire the target company on credit,

Co-financing - Investments of the nature of a project or co-financing from euro funds – additional capital

The summarised options of our funding mentioned above are for illustration only; we may also accept other purposes. Contact us, if you are interested.

Advantages of mezzanine funding

Advantages for the client


  • mezzanine funding is a “tailor-made” and stable financial instrument – a loan resistible to market turbulences,
  • creditors do not loose control over their companies,
  • funds provided in the case when it is impossible or very difficult to obtain a classic bank loan,
  • less restrictive compared to a bank product (cash, covenants etc.),
  • debt principal is usually paid as a single payment at the end of the maturity of the loan
  • mezzanine funding is cheaper than own resources

Advantages for financing banks


  • sufficient capital strengthens companies which were granted the loan
  • mezzanine capital is subordinated to them
  • a new partner in the project who protects the creditors' rights
  • reduces (spreads) the risk of provisions for banks