Mezzanine Debt

What are you aiming to achieve with your growth strategy? Whether it’s an acquisition, scaling operations, or refinancing existing debt, mezzanine debt offers a strategic and flexible funding solution tailored to your ambitions.

Growing businesses often face a delicate balancing act: securing sufficient capital without compromising equity or operational control. Traditional senior debt may not meet all your funding needs, while equity raises can dilute shareholder value and complicate governance. For mid-market, VC/PE-backed or listed companies, mezzanine finance bridges the gap between senior debt limits and equity dilution, helping preserve ownership while unlocking growth capital.

Mezzanine debt provides subordinated capital that sits between senior debt and equity in your capital stack. It is well suited to businesses backed by venture capital, private equity, or listed on public markets. In the UK, European and APAC markets, amid rising interest rates and evolving credit conditions, mezzanine finance is increasingly recognised as a valuable tool to extend your financial runway without unnecessary dilution.

Is Mezzanine Debt Right for You?

  • You need capital beyond senior debt limits while minimising immediate equity dilution
  • You seek flexible, subordinated financing with potential equity upside
  • Your business requires growth, acquisition, or refinancing funds with manageable repayment terms
  • You want flexible financing with fewer covenants, balanced by a higher cost of capital
  • You want to preserve control while balancing risk and return between equity and senior debt

Talk to an Expert

Understanding Mezzanine Debt

Mezzanine debt is a form of subordinated financing that complements senior debt by offering flexible capital, often combined with equity-linked features such as warrants. Positioned between senior loans and equity, it typically carries a higher risk-return profile.

It is generally structured as a term loan at the acquisition or holding company level, designed to support growth initiatives, acquisitions, or refinancing. Mezzanine lenders may require financial covenants with more headroom than senior debt, and facilities are governed by intercreditor agreements that balance protections for both senior and mezzanine creditors.

Key features include flexible repayment terms, potential equity participation, and tailored covenants aligned with your business model. Mezzanine finance helps optimise your capital structure while preserving equity and control. 

Navigating the Complexities of Mezzanine Debt

Mezzanine debt provides flexible growth capital, enabling expansion or acquisitions without immediate equity dilution. However, it comes with trade-offs such as higher interest costs and potential equity participation. Structuring it correctly is essential to match your cash flow and growth plans.

Selecting the right lender is critical. Not all lenders understand the nuances of mezzanine finance or the needs of mid-market, sponsor-backed companies. Securing favourable terms requires a strategic pitch that highlights your growth potential and risk profile. This process can be complex without the right expertise.

Fuse Capital combines deep mezzanine expertise with a strong network of UK, European and APAC lenders. We work closely with you to structure the right facility, present your business effectively, and ensure the funding aligns with your long-term objectives. We help you navigate complexities, avoid common pitfalls, and secure the best possible outcome.

Why Choose Us?

As your trusted debt advisory partner, we provide the expertise and support you need to navigate the complexities of funding. Here's what sets us apart:

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Focused Exclusively on Debt

Our exclusive focus on debt advisory means we bring deep expertise to help VC, PE, and PLC-backed businesses secure the right capital efficiently.

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True Partnership, Not Just Introductions

We work closely with you to understand your business, develop the right funding strategy, negotiate terms, and support you through every stage of the process.

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Built on Real-World Experience

Having built and scaled businesses ourselves, our advice is rooted in practical experience and a deep understanding of the challenges you face.

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Results That Speak for Themselves

Trusted by over 550+ businesses across the UK, Europe and APAC, we deliver strategic insight and tailored funding solutions that drive sustainable, long-term growth.

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Trusted By The Best

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Since 2013, we have delivered $100m amount of loans to game-changing startups backed by the likes of Google Ventures, Softbank and Atomico amongst many others legendary venture capital firms, accelerators and incubators.

  1. 1

    Consultation & Strategy:

    We understand your goals and craft a tailored debt strategy aligned with your capital structure and sponsor expectations.

  2. 2

    Lender Matching & Offers:

    We connect you with the best-suited funding partners from our global network and present you with carefully matched debt offers.

  3. 3

    Finalization & Funding:

    We support you through negotiation and closing, ensuring a seamless process to draw down funds and accelerate your growth.