# Mezzanine fund

- Canonical URL: https://www.gerhardmerk.de/mezzanine-fund
- Post ID: 594987
- Modified: 2023-07-25T21:03:06+00:00
- Language: en

## Definition

Special fund of a capital management company with the purpose of providing companies with mezzanine capital as desired. The fund usually provides a company with debt mezzanine capital in the form of subordinated loans. - Due to the higher risk generally associated with the subordinated nature of mezzanine capital, such loans are also subject to a higher interest rate. This is usually between ten and twenty percent plus a variable, performance-related component. However, because mezzanine capital is generally included in a company's equity capital in bank credit assessments, the company's creditworthiness increases, and the lower interest rate for bank loans at least partially offsets the high cost of mezzanine capital. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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