Mezzanine capital individually tailored for your growth plans
The term "mezzanine" refers to a type of financing which comprises elements of both debt and equity funding. Mezzanine is the common general term for silent partnerships, participation capital and subordinated loans. Mezzanine capital-providers are subordinated to third-party creditors, whereby the amount that is provided bears an equity character. The company is also not required to provide collateral in return for the receipt of mezzanine capital. Due to the equity-similar risk position of the mezzanine capital-provider, the related costs are above those of debt funding, but also clearly below the returns required by traditional equity-capital providers.
Our mezzanine financing facilities are adapted individually to specific investment requirements (for example, with respect to draw-down, duration and repayment). Combinations with direct investments as part of a financing concept adapted to the company are also possible.
The potential credit rating improvement for the entrepreneur thanks to our financing solutions can form the basis for a better rating and provide new scope for drawing down debt funding without the need to transfer shares and influence to external third parties.
For the company, mezzanine funding is also advantageous compared with other types of equity financing if, for example, the additional equity is clearly required for a limited period, and an entrepreneurial project (for example, succession arrangement) is to be implemented very rapidly, or the goal is to boost the company's stability and crisis-resilience through additional equity.
VR Equitypartner is subordinate to creditors in the event of bankruptcy, therefore the provided capital is of an equity-capital-similar nature.