About Main Mezzanine Capital
Through Main Mezzanine Capital subordinated loans are issued to successful Dutch-based companies, that are in need of strengthening of guaranteed equity.
Main Mezzanine Capital is founded in 2014 by a specialized team of professionals within Main Capital Partners.
Main Mezzanine Capital is funded by Main Capital Partners, wealthy individuals, family offices and (former) entrepreneurs.
Main Mezzanine offers leverage
For the entrepreneur (borrower)
A mezzanine loan offers entrepreneurs the opportunity to strengthen their capital without dilution. A mezzanine provides liquidity and flexibility (repayment options) and provides additional leverage which increases return on equity.
For the investor (lender)
Main Mezzanine Capital places the loans in a fixed group of funders. The funders receive an attractive return, whereby during the maturity interest is received (running yield). In general, the maturity is shorter compared to private equity.
Main Mezzanine Capital attempts to issue 4 to 5 loan per annum, so that in a short period of time a portfolio will be constructed with a diversified risk profile.
Advantages of a mezzanine
- Subordinated to bank debt, therefore guaranteed equity is increased and financing options at the (principal) bank are improved
- No collateral required (meaning all collateral remains available for principal bank)
- No threat to current relationship with principal bank (everything remains as is)
- Grace period for loan repayment
- Interest payments and financing costs are tax deductible (as opposed to dividend)
- Standardized documentation combined with limited ‘due diligence’ results in a short throughput time
- No dilution for existing shareholders
- No changes in shareholders agreements, no changes in existing governance structure
- No exit pressure
- Cheaper than equity capital, but…. more expensive compared to the bank