Entering mezzanine capital on the balance sheet

When constituted in this way, mezzanine capital is treated as equity capital in balance-sheet terms (what is termed ‘equity capital substitute’), but it does not involve the lenders in the company, and does not confer either voting rights or other types of participation or influence right.

Mezzanine capital can be constituted multifariously, and can take into account both the interests of the company and the interests of the lender in a balanced manner.