With the growth of the capital markets, there are numerous types of debts which have become popular these days. According to Challis Capital, one of the best debt options in modern day is Mezzanine Finance. Mezzanine Finance is a unique form of ‘bridging’ capital that bridges the gap between equity and debt. It is a subordinated debt facility which sits behind the senior lender and also ahead of equity in the capital stack.
Who uses Mezzanine Debt?
Mezzanine Debt is mainly used by people who are into property development. The objective behind such type of financing is to maximise the borrowing potential.
For an instance, if a senior lender is only willing to extend to 70% of costs a mezzanine lender may extend to 90% of TDC which means that the developer only needs to contribute 10%.
This has the potential to significantly increase the developers ROI.
Where to find Mezzanine Finance assistance?
Challis Capital has a pool of skilled professionals who possess complete knowledge about Mezzanine Finance. Their involvement in your investment plan can help you get the best returns. Wide resources and complete market knowledge make them an ideal choice.