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Commercial finance catalog

Structured & corporate capital / Capital stack

Mezzanine & Subordinated Capital

Mezzanine and subordinated-capital planning for established companies and sponsors managing acquisitions, growth investments, recapitalizations, and senior-debt gaps. Understand capital-stack position, repayment, sponsor, and exit considerations before a structured-capital discussion.

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Commercial-finance education only. This page is not an offer, approval, or commitment to lend.

What this capital path is built to solve

Established companies and sponsors managing an acquisition, expansion, recapitalization, or complex capital stack.

Mezzanine and subordinated capital can help bridge a financing gap when senior debt alone does not meet the full commercial capital requirement.

Typical commercial uses

  • Acquisitions
  • Growth investments
  • Recapitalizations
  • Capital-stack gaps

Structural highlights

  • Structured capital approach
  • May complement senior financing
  • Transaction-specific review

Decision framework

Mezzanine capital is evaluated as part of the entire capital stack.

Subordinated capital can help bridge a gap between senior debt, equity, and total transaction cost in appropriate situations. It is not a substitute for a complete sources-and-uses view, senior-debt plan, operating rationale, and credible repayment or exit strategy.

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Readiness signals

Facts that make the first conversation clearer

  • Prepare a sources-and-uses schedule showing senior debt, equity, subordinated capital, seller financing, and other capital sources.
  • Describe the transaction purpose, acquisition, growth, recapitalization, or project rationale.
  • Summarize business or sponsor profile, cash flow, existing debt, and projected repayment or exit context.
  • Identify senior-lender terms, collateral, intercreditor considerations, and major transaction milestones.

Key considerations

Questions to evaluate before choosing a path

  • Subordinated capital is generally positioned behind senior debt, which can affect risk, pricing, documentation, covenants, and expected return.
  • A complex capital stack may require coordination among multiple providers and professional advisers.
  • Projected growth or exit assumptions should be stress-tested rather than treated as a guaranteed source of repayment.

Initial review

The facts that move a first commercial conversation forward.

Start with the core opportunity. Additional information may be requested only if a possible capital path requires it.

01

Total capital stack

02

Senior debt context

03

Transaction purpose

04

Sponsor / business profile

05

Exit or repayment strategy

Bring better questions

Questions for the next capital conversation.

Use these prompts to organize your internal team and communicate with qualified capital, legal, tax, and accounting advisers. They are educational prompts, not advice.

Q01

What gap remains after senior debt and committed equity?

Q02

How does the proposed capital stack support the transaction without overburdening the business?

Q03

What senior-lender, intercreditor, and exit questions need to be addressed?

Frequently asked questions

Product answers before the first call.

These answers explain the capital path and initial preparation. They are not an approval, commitment, underwriting decision, or individualized financial advice.

Continue the research

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Ready to discuss the opportunity?

Put the next capital conversation in motion.

Start a product-aware capital profile. lendDEFY does not initiate a hard credit inquiry from this public page or initial profile.

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