Mezzanine capital is a flexible financing instrument which may be tailored to meet specific needs. Sharing certain characteristics of both debt and equity funding, it occupies a middle position in the risk-reward spectrum and may be used to bridge the funding gap that can sometimes arise between the two.

Mezzanine capital may be an appropriate financing option in situations where:

• Access to senior bank debt or senior leasing may be limited, due to a lack of collateral or an unfairly conservative assessment of a company`s prospects, and/or
• The dilution implied by raising additional equity capital is unattractive

Hanseatic Capital typically makes investments in mezzanine finance  in the following situations:

• Buyouts and buyins
• Growth capital
• Capital restructuring

Mezzanine investments may be structured using a wide range of financing instruments. These typically include:

• Subordinated debt with equity participation features
• High yield subordinated debt
• Convertible debt
• Venture Lease