| ign="center"> | | | | a lower cost of borrowing. |
| In development finance UK, a 100% development | | | | For entrepreneurs, the main attraction to mezzanine |
| finance can sometimes be completed through | | | | finance is that it requires less equity investment from |
| mezzanine funding. While mezzanine funding has been | | | | equity investors. This means that they can retain |
| a useful tool to complete funds for the project, its | | | | more ownership in their business and thus more |
| popularity have just increased in the recent years. | | | | management control. |
| Today, mezzanine funding has been widely used | | | | For investors, the main attraction for mezzanine |
| compared to other development finance UK such as | | | | finance is the recurrent interest income and the |
| equity finance, senior debt and high-yield bond. | | | | potential upside in the equity kicker. Mezzanine |
| Mezzanine finance has been more appealing to | | | | finance becomes even better after the various high |
| investors and entrepreneurs alike and they are | | | | profile defaults in the high yield bond sector and |
| mostly used to sustain both the residential and | | | | some melting returns from private equity |
| commercial development finance. Being subordinated | | | | investments. In effect, developers needing 100% |
| to senior debt, mezzanine finance companies can | | | | development finance can rely on the advantages of |
| disregard the breaching of their senior debt leverage | | | | mezzanine funding for their needed residential and |
| for substantial investment, which results to command | | | | commercial development. |