Private Debt & Direct Lending Credit, as investors, search for yield and opportunities that are not correlated to tradition bond and equity strategies and often with less volatility than many public markets
Mezzanine financings are completed through a variety of different structures, including:
Our mezzanine deals along with the typical interest payment associated with debt, also includes an equity stake in the form of attached warrants or a conversion feature, similar to that of a convertible bond.
Mezzanine loans will typically assume many of the following attributes:
RBF is for growing companies that either do not have the current revenue growth rates or scale or Founder desire to attract venture capital and/or lack the assets and meaningful profitability/cash flow to procure traditional debt products (bank financing) at the time of investment
Usually the returns to the investor continue until the initial capital amount, plus a multiple (also known as a cap) is repaid. Generally, RBF investors expect the loan to be repaid within 3 to 5 years of the initial investment.