Get Mezzanine Finance from $2m to$ 50m+
Reduce equity requirements by 60-70% with strategic mezzanine finance from $2M to $50M+. We help structure subordinated debt solutions through institutional funds and private credit providers, helping you maintain ownership while achieving up to 40%+ ROE.
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Mezzanine Finance - Quick Overview
Pricing & Returns
- Interest Rates: 12-20% p.a. typical
- Arrangement Fees: 2-4% of facility
- Total Funding (LTC): 85-95% combined stack
- Facility Term: 12-36 months typical
Capital Structure
- Senior Debt: 60-70% of costs
- Mezzanine Layer: 15-25% of costs
- Equity Required: As low as 5-15%
- Payment Structure: Rolled-up or PIK
Deal Requirements
- Minimum Size: $2M+ mezzanine tranche
- Project IRR: 20%+ target returns
- Sponsor Strength: Experienced developers
- Exit Strategy: Clear refinance or sale
Get Mezzanine Finance For Your Project
Mezzanine finance bridges the gap between senior debt and equity, unlocking 85-95% of total project costs when traditional lenders cap out at 70-80%. It’s the sophisticated funding layer that lets developers preserve equity while accessing the capital needed to execute ambitious projects, without diluting ownership or bringing in joint venture partners.
Successful mezzanine deployment requires three critical elements:
- Precise capital stack optimisation and IRR modelling
- Securing competitive pricing across senior and mezzanine tranches
- Structuring intercreditor agreements that protect all parties
Our direct relationships with mezzanine providers can mean access to institutional pricing, streamlined due diligence, and intercreditor terms typically reserved for tier-one developers. Book a free 30 min consultation to explore how mezzanine finance can enhance your project returns.
We help structure deals from $2M to $50M+ in mezzanine tranches, supporting everything from boutique developments to landmark commercial projects.
- Institutional mezzanine funds – Competitive pricing for $5M+ requirements with proven sponsors
- Private credit funds – Flexible terms for complex projects and shorter timeframes
- Family offices – Patient capital with bespoke structuring capabilities
- Specialist property lenders – Integrated senior and mezzanine facilities from single sources
Talk directly to a specialist
Ready to get started, or want to learn more?
Get direct access to Nadine Connell - your dedicated commercial finance specialist with over 15+ years experience and 3,300+ happy clients.
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Strategic Mezzanine Finance Solutions
Unlock Capital Efficiency with Subordinated Debt Structures
Bridge the Equity Gap
$2M - $20M typical
- Senior debt capped at 65-70%
- Preserve cash for other projects
- Avoid diluting ownership
- Example: $10M project, $7M senior, $2M mezz
Accelerate Multiple Projects
$5M - $50M+ portfolio
- Deploy capital across 3-4 developments
- Maintain diversified portfolio
- Maximise IRR on equity
- Leverage $5M equity into $50M projects
Reduce Pre-Sales Hurdles
$3M - $30M facilities
- Proceed with minimal pre-sales
- Start construction sooner
- Capture rising markets
- Launch with 0-20% pre-sales vs 50%
Avoid Joint Ventures
$2M - $25M tranches
- Maintain 100% ownership
- Keep full development profit
- Control all decisions
- Pay 18% p.a. vs giving 50% profit
Stretch Senior Limits
$2M - $40M mezzanine
- Banks cap at conservative LVRs
- Complex projects need more
- Non-standard developments
- Access 85-95% total funding
Opportunistic Acquisitions
$2M - $50M+ deals
- Quick settlement requirements
- Competitive bid situations
- Off-market opportunities
- Fast approval in 5-10 days
Exact rates vary based on your personal circumstances and project risk profile. Not financial advice. Talk to our team for an accurate quote.
Mezzanine Finance Rates, Terms & Structures
Project Scenario |
Typical Rates |
Total LTC |
Terms |
Key Features |
|---|---|---|---|---|
Residential Development |
12-15% |
85-90% |
12-24m |
Minimal pre-sales • Rolled-up interest • Clear exit |
Commercial Projects |
14-18% |
85-90% |
18-36m |
Tenant pre-commitments • Higher yields • Refinance exit |
Land Banking |
15-18% |
80-85% |
12-18m |
Strategic acquisitions • DA upside • Capital preservation |
Opportunistic Deals |
16-20% |
90-95% |
6-12m |
Fast settlement • Minimal equity • Bridge to refinance |
Distressed/Special Situations |
18-25% |
75-85% |
6-12m |
Workout scenarios • Rescue capital • Turnaround funding |
Capital Layer |
Typical Range |
Key Terms |
|---|---|---|
Senior Debt (1st Mortgage) |
60-70% of costs |
5-9% p.a. • First ranking • Bank or non-bank |
Mezzanine (2nd Mortgage) |
15-25% of costs |
12-20% p.a. • Second ranking • Rolled interest |
Preferred Equity |
10-20% of costs |
15-25% IRR • No security • Profit participation |
Developer Equity |
5-15% of costs |
25-40% target IRR • Last in, first out |
Total Project Funding |
85-95% LTC |
Blended cost 8-11% • Multiple tranches |
Intercreditor Agreement: Defines payment priority and rights between senior and mezzanine lenders
Payment Structure: Most mezzanine interest is capitalised (PIK) and paid at exit
IRR Enhancement: Using mezzanine can boost equity IRR from 25% to 35-45%
Exit Requirements: Clear refinance or sale strategy essential for mezzanine approval
Provider Type |
Rate Range |
Best For |
|---|---|---|
🏛️ Institutional Funds |
12-15% p.a. |
$5M+ deals, proven sponsors, flagship projects, lowest rates |
💼 Private Credit Funds |
14-18% p.a. |
$2-10M deals, flexible terms, complex structures, mid-market |
🏢 Family Offices |
15-20% p.a. |
Bespoke structures, patient capital, relationship-driven, long-term |
⚡ Specialist Lenders |
16-22% p.a. |
Fast execution, minimal requirements, bridge funding, opportunistic |
🔧 Integrated Providers |
Combined 8-11% blended |
Single source senior + mezz, simplified process, one relationship |
Deal Size Matters: Institutional funds typically require $5M+ mezzanine tranches
Speed vs Price: Faster approval usually means higher rates (2-3% premium)
Relationship Value: Repeat sponsors often secure 1-2% rate discounts
Structure Flexibility: Some providers offer equity kickers to reduce cash rates
Exact rates vary based on your personal circumstances and project risk profile. Not financial advice. Talk to our team for an accurate quote.
The Five Mezzanine Finance Stages
Exact rates vary based on your personal circumstances and project risk profile. Not financial advice. Talk to our team for an accurate quote.
Talk directly to a specialist
Ready to get started, or want to learn more?
Get direct access to Nadine Connell - your dedicated commercial finance specialist with over 15+ years experience and 3,300+ happy clients.
Choose how you'd like to connect:
Mezzanine Impact Calculator
See how mezzanine finance boosts your development returns
All development costs
Before finance costs
Total project duration
First mortgage rate
Second mortgage rate
% of total costs
Without Mezzanine
With Mezzanine
Mezzanine Finance Impact
Disclaimer: This calculator is provided for illustration purposes only and does not constitute financial advice or a loan offer. Calculated figures are estimates only, may be inaccurate, and do not reflect actual lender terms or fees. Actual loan amounts, rates, repayments, and eligibility will vary based on your specific circumstances and lender assessment. Do not base any financial decisions on this calculator. Contact our team for a tailored quote.
Examples of outcomes that can be achieved
Achieve superior returns with strategic capital structuring
Townhouse Development
$12M Project"Mezzanine finance let us start with zero pre-sales. Reduced equity from $3.6M to $1.2M, achieving 42% ROE instead of 25%."
Mixed-Use Development
$35M Project"Banks capped at 65%. Mezzanine took us to 85% funding. Freed up $7M to run two projects simultaneously. IRR jumped from 22% to 38%."
Apartment Complex
$28M Project"Avoided JV partner wanting 50% profit share. Paid 16% on mezzanine instead. Kept 100% ownership and saved $2.1M in profit share."
Ready to get started? Our 3-Step Mezzanine Process.
Get our team to structure the optimal mezzanine solution for you.
Assess Capital Stack
Free Strategy Session
We analyse your project's capital requirements, senior debt limits, and IRR targets. We'll model how mezzanine can enhance your returns and preserve equity.
- ✓ Model optimal capital structure
- ✓ Calculate ROE enhancement
- ✓ Identify best mezzanine providers
Negotiate Terms
Expert Structuring
We negotiate with institutional funds, private credit providers, and family offices to secure optimal pricing and terms. We manage intercreditor agreements with your senior lender.
- ✓ Competitive rate negotiations
- ✓ Intercreditor coordination
- ✓ Flexible exit terms
Fast Settlement
2-4 Week Timeline
We coordinate documentation between senior and mezzanine lenders for simultaneous settlement. Post-settlement, we monitor your exit strategy and refinance opportunities.
- ✓ Documentation management
- ✓ Simultaneous settlements
- ✓ Exit strategy support
Benefits of working with us
Stronger Application
We'll work with you to develop a strong application profile, improving your chances of a successful application. We'll also call out any issues or gaps early. Your business plan and cash flow projections are also include
Best Possible Terms
We compare multiple lenders and present suitable options from our extensive development finance lender panel. We consider loan features like rates & terms, payment flexibility and approval timeframes.
Help Avoid Mistakes
We help you avoid the common mistakes people make every day. From getting stuck with high rates to having loan applications rejected because the information wasn't structured the right way for the lender.
Frequently asked questions
What if my senior lender won't allow mezzanine?
We find that many senior lenders are comfortable with mezzanine if it’s properly structured. We can help negotiate intercreditor agreements that protect both lenders’ interests. If your current bank won’t accommodate mezzanine, we have relationships with 60+ lenders, many of whom will be happy to review your needs. In some cases it’s possible to find lenders that will offer to integrate senior and mezzanine facilities from a single source, eliminating intercreditor issues entirely.
What documents do I need for mezzanine finance?
The typically application documents require for mezzanine finance include a detailed project feasibility showing at least a 20%+ profit margin, a senior debt approval or terms sheet, any evidence of development experience (past 3-5 projects), your company and personal financials, and a clear exit strategy (pre-sales, refinance, or hold plan). Current project status (meaning DA, construction contract, QS report etc) may also be needed. We can help package everything to institutional standards.
Can I exit mezzanine early without penalties?
Most mezzanine facilities we work with have minimum terms (which are typically 6-12 months), with interest charged for that period regardless of any early repayments. Unlike traditional commercial loans though, there are usually no complex break costs. Some providers offer more flexibility with monthly interest payments allowing earlier exit. We negotiate the most flexible terms possible during structuring.
Is mezzanine more expensive than a joint venture?
It depends. While mezzanine rates (12-20% p.a.) might seem high at first glance, the total cost is often less than giving away 50% of profits to a JV partner. For example, on a $3M profit project, 16% mezzanine might cost $400K in interest, while a 50/50 JV costs $1.5M in profit share. And don’t forget, you maintain 100% control and ownership. Mezzanine is debt that gets repaid, not permanent equity dilution.
What's the minimum project size for mezzanine?
Most institutional mezzanine funds require minimum tranches of $5M, which are generally suitable for projects around $20M+. However, some private credit funds and family offices can work with $2-3M mezzanine pieces for $10M+ projects. For smaller developments, integrated senior and mezzanine facilities from specialist lenders may be more suitable. We can help you match to the right lender based on your project size.