Mezzanine Financing

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Home Startup Terms Glossary Mezzanine Financing

What is Mezzanine Financing?

Mezzanine financing is the middle ground between senior debt and equity that has characteristics of both types of financing. This type of financing allows company owners to convert their equity into cash, usually as long as venture capital companies or other high-level investors have been paid. Mezzanine financing is only used when a company goes into default.

Mezzanine Financing Examples

Here are some examples of mezzanine financing facts:

  • Has higher yields than other debt
  • Is one of the riskiest forms of debt
  • Collateral is rarely required
  • Interest rates can be fixed, variable, or both

This web page is also about mezzanine financing.

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Having overseen over $1.2 billion in transaction value, we are able to provide top-tier service at affordable rates, with much more personalized attention and fast turnarounds. After working for a AM Law Top 100 firm, I started my own firm and have been lucky enough to represent numerous conglomerates (FOX, Endeavor, etc.), promising startups, small businesses and private individuals. Our areas of expertise - Business Formations and Operating Agreements; Capital Raises and Debt Financing; Commercial Transactions; M&A; Real Estate; Intellectual Property; Employment and Hiring; Outside General Counsel; Corporate Agreements and Governance; Litigation and Dispute Resolution. We have been featured in The Wall Street Journal, Marketwatch, Yahoo Finance, Variety, Business Insider, Los Angeles Magazine, the LA Times, and others. We are driven by an unwavering commitment to our clients, going above and beyond to deliver results.

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