mezzanine investors

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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As a result, borrowers are turning to Mezzanine investors! lenders to provide capital that was previously available from first mortgage lenders (e.g.
RCI was recapitalized in August 2015 by a consortium of private equity and mezzanine investors, including Charles River Equity, Plexus Capital, Triangle Capital Corporation and Kemper Corporation, along with RCI management.
The group is active in financing transactions, including the energy sector, where it represents arrangers, mezzanine investors and other alternative lenders, financial sponsors and corporate borrowers throughout the energy chain, including upstream oil and gas, midstream, refining, oilfield services, power generation and distribution and renewables.
"That leaves $2.4 billion in losses for the original equity and mezzanine investors."
If there were an Oscar for Best Film-Financing Deal, the winning transaction might look something like this: Original equity investors are returned a multiple of their initial investment within a prescribed time frame, mezzanine investors get all their interest and principle paid; senior debt is fully serviced -- and possibly recycled for another favorable round of financing.
DIC and the mezzanine investors are still mulling their own bid to restructure the company's debt, one of the sources said, adding that this might include a bigger capital injection.
While senior lenders continue to exist, especially for films under $30 million, there's some skepticism about the ubiquity of mezzanine investors. The mezzanine layer, which sits right behind a bank's senior debt, is more difficult to secure these days, say financial specialists.
Furthermore, the growth of the CRE CDO market has continued to encourage subordinate and mezzanine investors to lay off risk into CDOs instead of embracing a buy-and-hold strategy.
From mezzanine investors to investment banks and even the public markets, new companies need more cash than the VC investment.
After three years at Goldman Sachs and three years as an investment officer for Starwood Mezzanine Investors and Starwood Opportunity Fund IV, he served from 1998 to 2007 in progressively senior roles at iStar Financial Inc.
Furthermore, the growth of the real estate CDO market has encouraged subordinate and mezzanine investors to lay off risk into CDOs instead of embracing a buy-and-hold strategy.
He says more patient investors -- called mezzanine investors -- will sometimes allow a longer lead time, make some money off of interest on a loan and expect to have some warrants (equity shares) in the company.