Mezzanine & Unitranche Financing

Mezzanine & Unitranche Financing - Our key figures

663 million euros
assets under management

The team structures and/or underwrites Mezzanine & Unitranche Financings, in bonds, from €5m to €100m tickets, with SMEs achieving an EBITDA from €5m to €30m.

The advantages of Mezzanine financing

For investors in the fund

Mezzanine debt offers an intermediate risk between debt and capital, together with a high return paid mainly through fixed coupons.

For the shareholder of the issuing company

Mezzanine debt is a quasi-equity tool with little or no dilution for the shareholder because Mezzanine debt is remunerated mainly with an interest rate (coupons). Warrants (BSAs) may be attached to the Mezzanine bond, giving only access to a very modest fraction of the share capital.

For the development of the company

Mezzanine debt does not hinder company's growth due to a low drain on cash flow.

For the company's bankers

Mezzanine debt is considered quasi-equity by banks because its repayment is subordinated to bank debt. It thus strengthens the company's financial structure and gives comfort to senior lenders.

The advantages of Unitranche financing

For investors in the fund

Unitranche offers an intermediate risk between senior and mezzanine financing. It allows the fund and its investors to benefit from regular incomes (cash coupons) with an attractive risk/return profile.

For shareholders or representatives of the borrower

Unitranche is generally subscribed by a single lender. It allows to gain flexibility and can help to bid quickly in competitive processes, when rapidity can be a crucial advantage.

For the borrower

Unitranche is ultimately repayable at maturity and allows the company to use its cash flows to finance its growth. It is particularly suitable for high-growth business or companies willing to pursue a buy & build strategy.

A first-rank debt instrument

Unitranche is a first-rank senior debt that encompasses both the bank debt and the Mezzanine in the capital structure.

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