Definition of mezzanine financeMezzanine finance An intermediate level in the funding of a company, lying between the equity and the debt. The investor may not be prepared to take more shares because of the risk, but it may not be feasible to borrow because of the requirement to pay interest and make capital repayments. The mezzanine funding might take the form of a convertible loan or preference shares. It may also be referred to as hybrid finance.
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