Mezzanine Funding is usually used when the company cannot get a large enough loan from traditional lenders, such as banks or invoice discounters, as it does not have enough security to offer.
Mezzanine Funding is largely used as gap funding in MBO or acquisition situations where all available assets have been charged to other funders.
It is a higher risk loan that is largely unsecured and as such carries a higher return for the lender. Usually classed as a cashflow lend where established cashflows demonstrate an ability to repay
Mezzanine loans are most commonly used in the expansion of established companies rather than as start-up or early-phase financing
Largely used as gap funding in MBO or acquisition situations where all available assets have been charged to other funders
Paul Humphray
Investment DirectorInvestment Director
paul.humphray@rivercapitaluk.com
0151 236 4040
What is my role?
I provide operational leadership and performance management to the Debt Team to drive new investment opportunities for funds under management. I also lead the investment process including appraising larger loan and mezzanine applications, presenting to the Investment Committee and subsequent monitoring of performance.
Hobbies or interests outside of work?
Favourite album?
Substance 1987 by New Order.
Jim Moore
Investment ManagerInvestment Manager
0151 236 4040
What is my role?
I focus on purely Loan & Mezzanine Debt Funds assessing and recommending loans typically from £100k up to £1m across the North-West.
Hobbies or interests outside of work?
Favourite album?
Anything by the ‘Boss’.