Mezzanine capital - Applications
The use of mezzanine capital for these 'buyout' transactions is the most conventional use of mezzanine capital. Click equity investors to see who we have supported.
Mezzanine capital is used to fund acquisitions in corporate build-up situations. It is used to finance fixed asset additions, the development of new products or moves into new markets. It can also serve as bridge financing before a stock market flotation.
An important application of mezzanine capital is to facilitate the reorganisation of shareholdings in a business, for example where one shareholder has the opportunity to acquire shares from a fellow shareholder. It is also possible to leverage a business with mezzanine capital to provide liquidity for existing shareholders.