Mezzanine Financing

Mezzanine capital represents a hybrid of equity and debt capital, combining the advantages of both financing options. If structured correctly, capital raised by mezzanine financing is rated as equity capital on a balance sheet, leading to an enhancement of your solvency and therefore easing the raising of new debt capital. For raising new equity capital you do not need to sell company shares to holding companies – mezzanine financing is usually implemented through subordinated loans, silent partnerships or profit participation certificates, allowing for a flexible arrangement of credit periods, interest yields and redemption terms.

Since creditors of mezzanine capital only have a subordinate claim to redemption in case of insolvency, raising mezzanine capital requires a more extensive due diligence. Aalto Capital supports you throughout the raising process: we analyze your financial ratios, develop a professional company presentation including financial multi-year planning, advise you on external ratings and assist you with the final contract negotiations.

Benefit from our integrated consulting and many years of experience – we are on hand with help and advice for you.