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mezzanine investors

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mezzanine investors

Persons or companies who advance money to a business and receive, in return, a combination of promissory notes and preferential ownership shares in the business. Just as the mezzanine is the balcony-type partial floor of a building, between the ground floor and the second floor,so too a mezzanine investor occupies the middle ground with more risk than the first and second mortgage lenders, but not as much risk as the owners and other investors. See also capital stack.



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