Mezzanine

With mezzanine financing you combine the advantages of equity and debt – together with high flexibility with regards to important conditions. You can fund long-term investment plans or strengthen the company’s capital structure without having to relinquish any company shares.

The benefits

of partnering with VR Equitypartner

Tailor-made

Together, we will find the optimal structure for your financing requirements: whether structured more as equity or as debt, in legal terms; whether, for example, for a 5 year or an 8 year term; when repayments will be due, etc.

Subordinated

We will rank after claims of third-party creditors – giving you more financial leeway, including with other finance providers such as banks.

Combinable

Not only can we present you with different mezzanine financing options, such as silent partnerships or profit participation certificates, we can also offer them in combination with a direct equity investment such as a minority shareholding – if this is necessary or makes sense.

What is mezzanine financing?

The term mezzanine describes a form of financing that contains elements of both debt and equity financing. For example: Mezzanine financing options can include silent partnerships, profit participation certificates and subordinated loans. Alongside equity, the claims of mezzanine financing providers are subordinate to those of other lenders in the event of insolvency. The company does not need to pledge any collateral to the mezzanine financing partner either. On the other hand, the mezzanine investor has no say in decisions and no profit share, as is typical with equity shareholders. This higher risk means that the cost of mezzanine financing is higher than that of debt, but it is still significantly lower than the rate of returns which traditional equity providers will want to see.

 

When is mezzanine financing used?

Mezzanine financing is particularly suited to situations where debt financing has its limits but equity is not an attractive alternative.

In growth financing, for example, a company’s credit history and cash flow often place tight limits on the loan amount. However, in periods of significant growth, companies often need higher amounts for investments or pre-financing. Not every entrepreneur wants to sell shares at times like this, so mezzanine financing provides a good alternative.

In times of restructuring or consolidation, financing requirements may be substantial, perhaps in order to fund a sustainable turnaround, which in turn may call for investment in more efficient production methods. Here, again, traditional lenders are generally very cautious. Mezzanine capital increases the company’s stability and ability to ride out crises with so-called quasi-equity.

This is why mezzanine financing is particularly interesting in situations where the additional equity requirement is clearly for a limited period only, for example because an entrepreneurial project needs to be realized quickly. A company succession is a typical example. Mezzanine financing has an average term of five to eight years, so the company still has access to the additional capital for a sufficiently long time to enable it to realize larger, longer-term plans.

Further benefits of mezzanine financing

For banks, customers and suppliers, the mere fact that a mezzanine provider is involved is seen as a sign of confidence in the company. This has clear benefits: As a rule, this improves the conditions upon which the company can raise debt significantly. Mezzanine financing can even be a basis for a better rating, which often gives the company access to further outside funding. This gives additional financial headroom, beyond the mezzanine financing total. It is not uncommon for companies to use mezzanine capital again and again. For example, they might use it to finance the development of a completely new range of products, or to show a major customer that they are on a strong financial footing.

Mezzanine

What do you need to be aware of when considering mezzanine financing?

If you want to consider mezzanine financing, your company’s cash flow needs to be high enough to meet all current financial obligations – at least the interest payments. Furthermore, the repayment schedule needs to be structured to take account of when the company is in a position to service the corresponding maturities. If this is not possible, then it is worth considering raising equity by means of either a majority or a minority shareholding, as this would not involve interest payments or fixed terms for repayment.

We can tailor our mezzanine requirements exactly to your specific investment needs – for example, with regards to draw down, maturity and repayment. And as an experienced equity investor, we can also combine mezzanine financing with traditional types of direct investment. This gives you the financial flexibility you need for your plans.

Das wollen Finanzinvestoren wissen, bevor sie ein Unternehmen kaufen

Die Beteiligung durch einen Finanzinvestor ist eine attraktive Option für alle Gesellschafter, die eine Nachfolge oder einen Gesellschafterwechsel planen. Doch was möchten Finanzinvestoren alles wissen, wenn sie die Beteiligung prüfen?

In unserer umfangreichen Checkliste finden Sie den typischen Prüfprozess und welche Informationen Finanzinvestoren in der Regel von Ihnen anfordern. So können Sie schon im Vorfeld Ihre Unterlagen aufbereiten und verbessern Ihre Verkaufschancen. Außerdem sparen in der “heißen Phase” der Due Diligence Zeit – und geben Kaufinteressenten das gute Gefühl, dass Sie professionell aufgestellt sind.

Checkliste kostenlos herunterladen

Finden Sie in einer ausführlichen Checkliste alle relevanten Informationen, die Finanzinvestoren beim Unternehmensverkauf von Ihnen haben
möchten.

  •  In welcher Phase was benötigt wird
  • Unterschiede Information Memorandum und Management-Präsentation
  • Unterschiedliche Due-Diligence-Themen von Legal bis IT
  • Unterschiede zwischen Prüfung von Finanzinvestoren und Strategen

Case Studies

VR Equitypartner unterstützt mittelständische Unternehmen mit maßgeschneiderten Finanzierungslösungen. Sehen Sie Beispiele unserer aktuellen und früheren Beteiligungen.

Wingert Foods GmbH

Wingert Foods GmbH

Die VR Equitypartner GmbH hat mit Mezzaninekapital den Gesellschafterwechsel im Rahmen der Nachfolge bei der Wingert Foods GmbH („Wingert Foods“) mitfinanziert. Wingert Foods ist ein

VELOX GmbH

VELOX GmbH

Die 1993 gegründete VELOX GmbH (Hamburg) ist ein europaweit führender Distributor von Rohstoffspezialitäten. Dabei agiert die Gesellschaft als wichtige und exklusive Schnittstelle zwischen den Herstellern

Ihre Ansprechpartner

Team Bayern

 

+49 69 710 476 – 316

Team Frankfurt

 

+49 69 710 476 – 212

Team West

+49 251 788 789-10

Your contact

For further details our contacts are available here.

Checkliste kostenlos herunterladen

Checkliste kostenlos herunterladen

8 Faktoren, die Ihren Unternehmenswert beeinflussen

Vom Hauptbahnhof Münster/mit öffentlichen Verkehrsmitteln:

 

Mit dem Taxi benötigen Sie etwa 10 Minuten.

 

Mit öffentlichen Verkehrsmitteln gibt es vom Hauptbahnhof mehrere Buslinien. Sie nehmen entweder die Buslinie 7 Richtung Kriegerweg, die Linie 15 Richtung Albachten oder die Linie 16 Richtung Mecklenbeck. Die Ziel-Bushaltestelle heißt in jedem Fall “DZ HYP/IHK”. Von hier überqueren Sie die Weseler Straße und finden schräg gegenüber den Sentmaringer Weg. Gleich im zweiten Haus auf der linken Seite (Hausnummer 21) finden Sie die VR Equitypartner GmbH.

 

Mit dem Auto:

 

Von der A1 und A43 kommend, fahren Sie am Autobahnkreuz Münster-Süd auf der B51 und später auf der B219 (Weseler Straße) Richtung Münster-Innenstadt. Nach der zweiten großen Kreuzung biegen Sie nach knapp 400 m rechts in den Sentmaringer Weg. Die VR Equitypartner GmbH finden Sie auf der linken Seite.

Frankfurt

VR Equitypartner GmbH
Platz der Republik
60265 Frankfurt am Main

Entrance:

Cityhaus I
Platz der Republik 6
Entrance via Friedrich-Ebert-Anlage

From Frankfurt Airport:

Take the A5 towards Frankfurt to Westkreuz Frankfurt. Follow signs towards Frankfurter Westkreuz and Messe. From there, drive into Friedrich-Ebert-Anlage and follow the arrows on the map.
Parking is available in the public car park “Westend” in Savignystraße.

On request, we are happy to reserve one of our visitor parking spaces in Cityhaus I for you.

The entrance is in Erlenstraße.

With public transport:

Take S-Bahn line S8 or S9 (towards Frankfurt Hbf., Offenbach or Hanau) and you will arrive directly at the main station (Hauptbahnhof).

U-Bahn line U4 or U5 – Station Frankfurt(Main) Hbf.

It then takes around 5 minutes on foot from the station to VR Equitypartner.

Tram lines 11, 16, 17, 21 – Platz der Republik stop.

CV

  • Managing Director of VR Equitypartner GmbH
  • Responsible for Risk-/Portfoliomanagement, Value management, Accounting, Controlling, HR, Legal, Data protection, Revision, IT and Operations
  • Until merger he had been Managing Director of DZ Equity Partner since 2010
  • Before: Group Head and Vice Head of Division for Structured Financing with focus on acquisition financing (credit)
  • Apprenticeship at Dresdner Bank AG, Wiesbaden, Business administration Studies at the University of Passau and Managerial and Administrative Studies at Aston University Birmingham with “Diplom-Kaufmann” final qualification (MBA equivalent)

CV

  • Managing Director of VR Equitypartner GmbH
  • Responsible for acquisition and development of direct investments and mezzanine financing projects
  • Joined DZ Equity Partner as Investmentmanager in 2006
  • Since 2008 Member of the Executive Board and since 2013 Authorised Representative
  • Before: Procurist and Certified Accountant at PricewaterhouseCoopers
  • Final qualification: Diplom-Kaufmann (MBA equivalent), Business administration degree at the University of Mannheim