Mezzanine capital

Hybrid form of financing for companies that legally and economically ranges between debt and equity. Mezzanine capital is usually granted on a long-term basis and without strong collateral. Interest is often paid on a performance-related basis. Because the risk for the investor is higher, interest rates are usually higher than for a traditional bank loan, for example. Common forms include subordinated loans, silent partnerships, profit participation rights and convertible bonds. Can be raised via Crowd investing .