Mezzanine fund

Structure[ edit ] Mezzanine financings can be completed through a variety of different structures based on the specific objectives of the transaction and the existing capital structure in place at the company. Mezzanine lenders, typically specialist mezzanine investment fundslook for a certain rate of return which can come from each individual security can be made up of any of the following or a combination thereof: A periodic payment of cash based on a percentage of the outstanding balance of the mezzanine financing.

Mezzanine fund

European leader in the dinner bag market. Private debt instruments include, by example, senior debt, Mezzanine debt, and other forms, or combinations, of subordinated debt and equity-linked instruments that are not publicly quoted. Mezzanine is a loan instrument that sits between senior debt and equity in the capital structure.

It is often used in situations where bank financing is not adequately available, thus replacing part of the equity need. Mezzanine financing shares characteristics of both equity and debt. It includes a subordinated loan component, which is complemented by some form of equity-related feature such as warrants.

Uses of Mezzanine Mezzanine is mostly used in private equity sponsored acquisitions, management buy-outs and recapitalizations, and in financing of both organic and acquisition-led growth of individual companies.

Benefits The main benefits Mezzanine capital provides are: Cash interest payable to the lender e. Typical cash interest comprises Euribor plus an agreed margin. Capitalized interest, which becomes payable at maturity or when the mezzanine debt is prepaid.

The third component consists of warrants or other forms of equity instruments. Warrants typically constitute right to subscribe shares of the company at a point in the future. Mezzanine loans are generally bullet loans, i. The pricing of Mezzanine capital reflects its position in the capital structure.

In compensation for the increased risk, due to the weaker position relative to senior lenders, Mezzanine debt investors require a higher return for their investment than senior debt providers.

It is usually agreed that all claims of the bank, i. Both parties make their independent loan agreements but often the document and terms are harmonized.

The covenants of the Mezzanine lender are, however, usually less restrictive than those of the senior lenders. Responsibility Armada is committed to responsible investing. Please see our Responsible Investment Policy.

Mezzanine fund

In addition, Ilkka has experience in investment banking and equity research. He holds a M.In structured finance, a tranche is one of a number of related securities offered as part of the same transaction. The word tranche is French for slice, section, series, or portion, and is cognate to English trench ('ditch').

In the financial sense of the word, each bond is a different slice of the deal's caninariojana.comction documentation (see indenture) usually defines the tranches as different. About Us. Sierra Total Return Fund is a closed-end investment company operated as an interval fund and sponsored by Medley is an alternative asset management firm with over $5 billion of assets under management (“AUM”) 2 that offers yield solutions to retail and institutional investors.

Penta Mezzanine Fund is a private investment firm providing $2 to $15 million customized growth capital solutions to profitable, lower-middle-market companies nationwide. KMG Capital Markets has over 25 years of experience in the financial industry, with an extensive background in fund management, portfolio management and fund construction.

in the media and entertainment, telecommunications, education, information services, and business services sectors. As a private investment firm with a mezzanine focus, our investments are in the form of subordinated debt with warrants; in select cases, investments may also include equity securities.

Five Points Capital ("Five Points") is a leading independent private equity manager founded in to solely focus on investing in US lower middle–market, growth-oriented companies.

Clearview Capital, L.P., a private equity firm in Stamford, CT.