Mezzanine Funding
This type of product 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 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.
Key Takeaways
of Mezzanine
Funding
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
Meet our Mezzanine Funding Team:
John Gray
Head of Debt0151 236 4040
Head of Debt
0151 236 4040
What is my role?
As Head of Debt, I work with the team of Investment managers and oversee a portfolio of over £40m of debt funds, including the Northern Powerhouse Investment Fund, Flexible Growth Fund, and Business Growth Loan Fund.
I’m driven by the company’s long-term goals and ambitions and was particularly drawn to River Capital’s commitment to growing funds under management, which will enable us to provide more efficient and effective support to SMEs not only in the Liverpool City Region but beyond.
Hobbies?
- Golf
- Running
- Getting out into nature
Fave album?
Meatloaf – Bat Out of Hell
