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Mezzanine Funding
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Mezzanine Funding
Mezzanine Expertise
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Acquisition Funding
Acquisition Funding Expertise
Acquisition Funding Tools
Case Studies
Mezzanine capital is built for the long term, providing companies with a sound financing structure for a high growth journey.
It historically has played a countercyclical role in the credit markets.
Mezzanine lenders are wired differently than other lenders and are driven by company specific credit variables as opposed to macroeconomic statistics.
Providers of mezzanine capital may consider general economic and industry trends, but are laser focused on the historical financial drivers of a company.
They dig into what makes the company tick and its competitive advantages.
Through focusing on company specific factors, they build long term conviction in the business.
Through analyzing how the business fared and adjusted in prior cycles, mezzanine capital providers gain comfort that business will thrive long term, regardless of the market.
Mezzanine Capital as a Contrarian Strategy in Market Cycles
This ability to think independently, and not with the herd, allows them to be opportunistic and flexible in market downdrafts.
When banks get too excited in bull markets and make too many bad loans, mezzanine lenders sit back and wait until the market cools when they can capture better deals at good pricing.
The contrarian streak within the DNA of mezzanine capital allows it to be a credit sanctuary for companies that need funding during a tough market.
Because they are focused on the long term, a 5- or 6-year maturity, they maturely assess risk and are less prone to knee-jerk market reactivity.
Ultimately, the quality of the company will prevail, and the faith of the capital provider will be rewarded.
When markets are shaky, those who can cooly assess risk and invest in a down market usually record large gains.
Mezzanine capital providers, due to their strength as investors, are able to see market tightening as temporary but a company’s strengths as durable.
This allows them to remain resilient in choppy markets and to generate returns from assets that others are fleeing.
