Private credit glossary · Data updated Oct 23, 2026
What is mezzanine debt?
Mezzanine debt is subordinated capital that sits between senior debt and equity — higher-cost than senior debt but cheaper than dilution, often carrying an equity kicker such as warrants.
596
active Mezzanine funds in this site's database
$7.5M–$50M
median confirmed check size, from 136 source-confirmed ranges
How it works
- Ranks behind senior lenders in repayment, so it prices higher (often low-to-mid teens all-in).
- Usually unsecured or second-lien, sized on EBITDA rather than hard assets.
- Frequently includes warrants or payment-in-kind (PIK) interest to reduce cash coupon.
When borrowers use it
- Filling the gap when senior lenders cap out but the deal needs more leverage.
- Buyouts, recapitalizations, and growth capital where dilution is not an option.
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