1. Informal; In
bracketing, the second largest
underwriting group responsible for placing a certain amount of a new
issue with investors. The term is sometimes used interchangeably with "
major bracket." Brackets are listed in order of size on an advertisement detailing each new issue, known as the
tombstone.
2. In
venture capital, a term used to describe a company with more
risk and more potential
return than an
IPO, but less than a
startup. It is also used to describe a company in which venture capital has been invested six to 12 months before
going public. In general, the mezzanine level is a company that once was a startup but has succeeded and is progressing toward public trade. See also:
Mezzanine financing,
Mezzanine debt.