Mezzanine Lending: A Strong Private Market for Financing Growth

Mezzanine financing provides alternatives to traditional capital lending and is an answer to debt managers in the credit market. As private equity transactions increase, mezzanine financing appears to be an attractive option for investors. The article will present the current trends in the mezzanine market, the outlook for mezzanine financing as well as recent mezzanine transactions in the U.S and global mezz space. Current Trends As direct lending is declining in the capital market, there has been a minor resurgence of mezzanine debt. The resurgence is a result of an increase in demand by dealmakers for mezzanine capital. Due to recent market uncertainty, some senior lenders are withdrawing from the market increasing the prospects for mezzanine investors. Higher multiples are also reducing margins on attractive deals and motivating dealmakers to choose less expensive alternatives to equity. The flexibility of mezzanine debt is a factor that dealmakers are considering in…

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