Mezzanine Finance
A secondary financing layer that sits between senior debt and equity. Mezzanine carries a higher interest rate (typically 12-20%) because it is subordinate to senior debt and only repaid after the senior lender.
Why it matters
Mezzanine reduces the equity required but increases total finance costs. It can make or break marginal deals.
In Profivo
Added as a second debt tranche in the Finance tab with independent terms.