Mezzanine partners 1 offers
tailor-made subordinated debt
Mezzanine Partners 1 specializes in subordinated debt in leading small to mid-sized companies based in Belgium. The focus is on pure debt financing and the incorporation of equity instruments such as warrants is rather exceptional.
Mezzanine Partners 1 invests in companies with stable historical performance and predictable cash flows.
Starters and those involved in restructuring are not eligible for this kind of financing. The subordinated loans will predominantly be granted to Belgian companies. Occasionally, investments in non-Belgian companies might be possible, provided that there is a demonstrable link with Belgium, or if there is any added value involved for Belgium.
We invest in both sponsored and non-sponsored transactions and provide mezzanine debt to finance the following needs:
- Growth opportunities
- Financing of expansion investments or a strongly increased need for working capital driven by new clients/markets;
- Take-overs, buy-ins and buy-outs
- Financing of external growth or financing the deployment of existing or new management;
- Financing of (subordinated) credit coming to maturity.
In the current environment of constrained bank lending, mezzanine debt is an attractive source of quasi equity.
At the same time it is a form of long-term financing, allowing the entrepreneur to realise his/her projects without having an impact on the shareholder structure. It does not dilute shareholder capital and the entrepreneur retains control of his/her company.
In management buy-outs, mezzanine financing can also be a useful tool to align the interests of management and of any majority shareholder.
Finally, the compensation does not depend on dividends paid or the realisation of capital gain on the sale. The mezzanine agreement secures the payable amounts and fees during signing, making the entrepreneur perfectly aware of the conditions.