What is the typical structure of a mezzanine investment?
Unlike senior bank loans, a predetermined “product suite” for mezzanine investing does not exist. Each investment is tailored to the specific needs of the individual client. Generally speaking, most mezzanine investments are unsecured, involve a term of 2 – 7 years, a current interest rate of 12% – 14% (no amortization), and some form of an equity kicker (i.e. warrants, success fees, etc.). FNBCC prefers to invest a minimum of $1 million in any single transaction and will entertain opportunities to invest as much as $7 million.
