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Property Finance

Mezzanine Finance

Subordinated debt to bridge the gap between senior debt and equity in development capital stacks.

Typical Range:£1M – £50M+
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Overview
We introduce mezzanine finance requirements to specialist debt funds and private lenders providing subordinated debt solutions for residential and commercial development projects.

Mezzanine finance sits between senior debt and equity in the capital stack of a development project. It allows developers to increase total leverage beyond the maximum available from a senior lender, typically taking total LTC to 85–90% or LTGDV to 80–85%.

Mezzanine is priced above senior debt to reflect its subordinated position and higher risk. It is suited to schemes where the developer has limited equity but a strong track record and a viable project, and where increasing gearing would significantly improve equity returns.

Suited For
Residential development projects requiring higher gearing
Commercial development schemes
Mixed-use developments
Developers with limited equity but strong track record
Schemes with strong pre-sales or pre-lets
Projects with existing senior debt facilities
Key Features
Mezzanine from 65–85% LTGDV
Whole-loan structures combining senior and mezzanine
Residential and commercial development
Rolled-up or serviced interest options
Fixed term aligned to development programme
Can be arranged alongside senior facility
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Compliance Notice: RC Private Clients acts solely as an introducer and does not lend money, provide regulated financial advice or arrange regulated finance. Any regulated activities are undertaken by appropriately authorised third-party firms.