Which Private Capital Companies Offer Mezzanine Financing
By Taimour Zaman
When a business wants to grow, the usual playbook is straightforward: borrow more from the bank or sell equity. But in the real world, that binary choice often breaks down. Banks get skittish, equity investors demand too much ownership, and the deal risks falling apart.
That’s where mezzanine financing comes in. Quietly, it has become one of the most important tools in private capital, filling the gap between senior debt and equity, keeping acquisitions and expansions alive.
What Is Mezzanine Capital?
Mezzanine financing is a hybrid structure. It appears to be debt, but it comes with an equity-like upside. Investors may receive interest payments plus warrants or options, positioning them to earn double-digit returns while also sharing in future growth.
Typical yields fall in the 12%–20% range, which is far higher than bank loans but less dilutive than selling a significant stake of equity. In short, it’s the “in-between money” that can transform a stalled deal into a completed one.
The Private Capital Firms That Provide Mezzanine
This isn’t something you get from your neighborhood bank. Mezzanine is offered by private capital specialists, including:
- Crescent Capital Group — global credit investors with mezzanine in their toolkit.
- Midwest Mezzanine Funds — focused on lower middle-market sponsor-led deals.
- NewSpring Mezzanine — providing hybrid debt-and-equity packages for scaling entrepreneurs.
- Assurance Mezzanine Fund — writing $3M–$20M checks to profitable, smaller companies.
- HPS Investment Partners — a heavyweight credit platform that includes mezzanine among its strategies.
- Kelso & Company (with BlackRock) — blending mezzanine and private equity through a joint venture BDC.
Each plays in a slightly different lane, but all exist to solve the same problem: when traditional lenders stop short, mezzanine keeps the deal alive.
Why It Matters to Accredited Investors
For accredited investors, mezzanine is more than just a niche corner of private finance:
- It offers yield premiums significantly above those of conventional debt.
- Equity features give participation in upside growth.
- It diversifies exposure across cash-flowing, mid-market companies.
- It aligns with private equity sponsors’ efforts to drive operational improvements.
That blend of income + upside is why mezzanine continues to attract sophisticated investors worldwide.
How to Get Access
Breaking into mezzanine deals isn’t easy—you need networks and introductions. Options include:
- Investing in mezzanine funds run by specialists.
- Co-investing with private equity sponsors on specific transactions.
- Leveraging curated databases to find active mezzanine lenders.
- Working with advisors who maintain direct relationships with fund managers.
Next Step: Work with AltFunds Global
At AltFunds Global, we help accredited investors and sponsors connect with the right mezzanine capital providers—the firms that actually close transactions.
👉 Want tailored guidance? Schedule your strategy call now.
Whether you’re raising mezzanine capital or looking to allocate into this unique asset class, we’ll guide you to the right opportunities.
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