Mezzanine Financing

A Mezzanine Financing is a hybrid form of capital that sits between senior debt and equity, commonly structured as subordinated debt that may include warrants, payment-in-kind (PIK) interest, or conversion features. In growth and buyout transactions, Mezzanine Financing can increase total leverage when senior lenders won’t provide more, and Mezzanine Financing typically carries higher cost due to its junior position.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.