The right structurechanges morethan the cost of capital.
Interest is only the starting point. Repayment priority, security, investor rights and operating flexibility matter just as much. We assess them together.
Senior debt
Finance with the repayment priority defined in the documents. It generally requires suitable security and predictable cash flow, with terms reflecting project risk and lender requirements.
Mezzanine financing
A layer between senior debt and equity. It can reduce the need for a new equity partner, while pricing, subordination and any equity-linked rights require specific agreement.
Bridge financing
Short-term capital for an acquisition or the period before longer-term funding. A defined term and credible repayment source are central to the assessment.
Equity and co-investment
Equity investment, usually through a project company, with agreed economic rights, governance and exit arrangements.
What does this stage need from its financing?
A purchase with a fourteen-day payment deadline and a construction programme running for years are two different structures, even though both are called financing. We start with what the project needs and what constrains it. The instruments come last, not first.
Mezzanine: common questions
- How much does mezzanine financing cost?
- There is no single price. Amount, term, repayment priority, security and any equity-linked rights all affect the economics. The comparison must cover interest, fees, minimum return and every other agreed element.
- How is mezzanine different from a loan from a shareholder?
- By position in the structure, not by name. Mezzanine describes where the financing sits in the repayment order and what secures it; a shareholder loan describes who provided it. What counts is the agreement, the subordination, the security and the lender’s rights, not the label.
- Can mezzanine be repaid early?
- Yes, if the agreement provides for it, so we settle it before signing: the rules for early repayment, any fee and the minimum period over which remuneration accrues. It is one of those things worth asking about before you need it.
- When does mezzanine not make sense?
- When the project can secure suitable, lower-cost capital without compromising a critical deadline. Mezzanine is one tool, not the default answer. If the additional cost does not buy a meaningful benefit, another structure may be preferable.
Let’s talk about the specifics.
Tell us your objective, project size and key deadline. We’ll explain whether and how we may be able to help.
Get in touchWolf VenturesMonday to Friday, 9:00 am to 5:00 pm[email protected]
Registered officeul. Tadeusza Saloniego 1/1
40-712 Katowice