Mezzanine capital and mezzanine financing as venture capital for medium-sized companies and owner-managed family business the from the Italian term “Mezzanine” originally referred to a low mezzanine floor between two main floors architecturally. Mezzanine financing put as a mezzanine”in any respect: is Bank-independent forms of financing which is a between debt and equity. According to this intermediate position is also the liability of mezzanine capital. Compared with the foreign capital it is subordinated, remains but mainly regarding equity. I.e. in case of insolvency of all outstanding claims satisfy investing financial backers of foreign capital the creditors and then mezzanine capital. Through the subordination to the classic foreign capital, mezzanine capital is therefore to evaluate as economic equity. If requirements complementing the mezzanine participation agreements meet, can the mezzanine capital legal balance sheet as equity (see).
Under the generic term of mezzanine financing all forms of instruments of corporate financing can thus summarize, which represent a hybrid of debt and equity and are characterized by their subordination. The mezzanine capital is so stimmrechtsloses equity. The mezzanine capital titled also as a hybrid form of financing is therefore no new financing instrument, but is intended to be a summary of already long established ways of corporate financing (quiet capital, participation capital and loan capital). Manifestations of mezzanine capital: mezzanine capital can similar to equity capital (so-called equity mezzanine) in the form of profit participation certificates, worth securitised paper profit participation certificates or dormant holdings be issued. Also convertible profit sharing certificates, promissory notes and bonds are possible. Mezzanine capital, which in the form of subordinated or participating loans or granting shareholder loans, is, has, however, foreign capital character, and is recognized as liability (so-called debt mezzanine). The design possibilities of mezzanine capital are not legally or only little regulated, so flexible and optimal financing solutions are possible, for example, as regards duration, cancellation, profit and interest rules or repayment (www.emissionsmarktplatz.de). Mezzanine capital can also be used in the context of employee involvement programs.