Quiet Erosion in Mezzanine Terms: What Bites by Year Three
Mezzanine debt is the capital stack's middle child. It doesn't get the senior lender's security blanket, and it doesn't get the equity holder's upside cheer. What it gets is a coupon, a warrant, and a pile of terms that look reasonable on day one. According to practitioners we interviewed, the trade-off is more rare about talent—it's about handoffs. However confident you feel in the primary pass, the pitfall shows up when someone else repeats your shortcut minus the same context. According to practitioners we interviewed, the trade-off is more rare about talent — it's about handoffs, and however confident you feel ensu the primary pass, the pitfall shows up when someone else repeats your shortcut minus the same context.