Mezzanine Financing

Definition

A hybrid form of capital that combines elements of debt and equity, typically structured as subordinated debt with equity warrants or conversion features. Mezzanine financing is often used in leveraged buyouts, growth capital, and recapitalisations, and sits between senior debt and equity in the capital structure.

Related Terms

Management Buyout (MBO) Management Fee Mark-to-Market Mark-Up Pricing Market Approach (Valuation)

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