A mezzanine debt provider is a lender who provides mezzanine debt, which mostly tends to be funds ranging in size from $100 million to over $ 5 billion. Such providers seek to lend to companies with stable EBITDA levels who can safely service higher levels of debt. Mezzanine debt is a useful source of growth finance in circumstances where bank finance is unavailable and when the existing owners are reluctant to see their own share holdings in the business diluted by new equity investors. Companies can use mezzanine financing for several needs including funding of acquisitions, management buyouts or expansion plans.

What must you look for in a mezzanine debt provider?

Since mezzanine finance combines elements of both debt financing and equity investment it is vital to find the right provider who can provide the most suitable solution. Look for a provider with the following traits.

A positive track record: Choose a mezzanine debt provider who has a track record of positive outcomes over the course of many years and who is willing to provide references to their successfully completed transactions.
Ability to provide customized structures: You may be seeking mezzanine debt for fund acquisitions, management buyouts or expansion plans. Your mezzanine provider must be willing to provide bespoke structures that will work in your benefit.
Willingness to work in your best interests: As with any other financial lender, choose a mezzanine debt provider who provides the best in terms of value on the amount, price, and flexibility of the mezzanine debt raised.

How Attract Capital can help in choosing a mezzanine debt provider?
Unlike senior debt or equity financing which can be sourced quite easily, mezzanine debt sourcing requires an extended timeframe, the right contacts and past expertise in the area. Attract Capital is built upon a 25-year old knowledge base of the private capital markets which serves as the development platform for our firm’s consulting services and financial solutions. This includes our founder’s involvement in over 125 transactions over the past 23 years, totaling over $1.2 billion. Our mezzanine funding solutions are backed by:

Unparalleled market expertise
We bring with us over 25 years of market experience, providing the best structuring criteria, lender preferences and presentation requirements.

Extended lender platform
We work with over 100 mezzanine debt providers and can provide quick sourcing solutions for your mezzanine debt needs.

Efficient workflow process
We follow a focused and disciplined workflow process resulting in multiple financing options and timely funding outcomes.

Contact us today to speak to one of our advisers. We will be happy to provide a free consultation regarding your mezzanine financing needs.

As the Fed decides to ease interest rates, middle market acquisition financing structures will benefit in a number of ways. The underlying values of middle market companies will increase leading to a higher enterprise value and lower loan to value ratios for existing portfolio companies of acquisition financing lenders.

The role of acquisition financing is infrequently elevated above a functional transactional one. When a business needs financing to acquire, they go to the market and source acquisition financing to supplement their equity investment to close the deal. Despite existing in many different forms, acquisition financing is rarely explained in terms of the value it brings to the acquirer.

Acquisition financing underwriting usually focuses on business and financial issues that underpin the stability of cash flow. Providers of acquisition financing usually validate the durability of a company’s competitive advantage and the depth of its resource base. Environmental issues are usually not a major part of the analysis in today’s service and technology-based economy.

Mezzanine Debt Providers

What must you look for in a mezzanine debt provider?

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