Frequently Asked Questions(FAQ)

What is the typical term length for a mezzanine loan?
When does it make sense for companies to pursue mezzanine financing?

Mezzanine financing is commonly used as an alternative option for securing financing for the purposes of company growth and expansion, ownership changes, debt refinancing, and diversification of a company’s structure.

What kind of return can investors expect from a mezzanine fund?

Mezzanine loans are known for their high returns to lenders, bringing returns of 12% to 20% per year.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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