FINVIA
Glossary
Glossary
Glossary
Mezzanine is a hybrid form of corporate financing that combines the characteristics of debt and equity. It is a flexible financing option in which the lender is granted an intermediate position between traditional debt and equity. Mezzanine financing is often used to support companies with expansion projects, acquisitions or other growth initiatives. They provide companies with additional capital to finance their growth without requiring immediate repayment or loss of control of the company. Mezzanine financing offers attractive features for both lenders and companies and is a popular option for financing strategies.
Real estate mezzanine refers to a special form of financing for real estate projects in which mezzanine capital is used. This interim financing lies between traditional debt capital (senior debt) and equity. Real estate mezzanine financing is often used to close financial gaps or provide additional capital for the acquisition, development or renovation of real estate projects. By using mezzanine capital, investors and developers can cover the necessary capital requirements without having to finance the entire project with equity. Real estate mezzanine financing offers flexibility and an attractive return for investors while supporting development and expansion opportunities in the real estate sector.