Revelle Capital

Development Gap Funding

Mezzanine Finance: Unlock Higher Leverage for Development Projects

Subordinated debt to increase your development leverage. Sit behind senior debt, ahead of equity. Access the capital you need without diluting ownership.

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Gap Funding for Property Development

Mezzanine finance bridges the gap between senior debt and equity, providing developers with additional leverage to maximize returns. Access funding up to 95% LTC when combined with senior debt.

For developers who've exhausted senior debt capacity but don't want to dilute equity or bring in JV partners, mezzanine finance provides the missing piece. Sitting behind senior debt in the capital stack, mezzanine lenders take subordinated security and accept higher risk in exchange for higher returns.

Through our network of specialist mezzanine providers, we structure flexible facilities that maximize your leverage while preserving upside. Interest can be serviced, rolled up, or linked to profit participation depending on your cashflow requirements.

Key Statistics

Combined LTC
Up to 95%
Typical Term
12-36 months
Loan Size
£250K - £10M
Position
2nd charge
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Why Choose Mezzanine Finance?

Maximize leverage without diluting equity ownership

Maximum Leverage

Combine with senior debt to achieve total leverage up to 95% LTC, minimizing equity requirement

Preserve Equity

Borrow more without diluting ownership or bringing in additional JV partners

Flexible Structuring

Interest rolled up, profit participation, or hybrid structures to match your cashflow

Speed to Market

Faster than raising equity, more flexible than traditional banks

How It Works

Our structured approach to mezzanine finance

1

Capital Stack Assessment

We analyze your project, existing senior debt, and equity gap to determine optimal mezzanine structure.

2

Mezz Lender Matching

We present options from specialist mezzanine lenders who understand development risk and returns.

3

Coordinated Completion

We manage intercreditor agreements between senior and mezzanine lenders for smooth execution.

Who Is Mezzanine Finance For?

Property developments requiring higher LTC than senior lenders offer
Bridging the equity gap when raising JV funds proves difficult
Enabling larger projects without personal capital
Profit-focused developers wanting to preserve upside
Experienced developers with strong track records
Projects where development profit justifies mezzanine costs

Get Mezzanine Finance Advice

Tell us about your development and we'll structure the optimal mezzanine solution to maximize your leverage.

1
Your Requirements
2
Project Details
3
Contact Info
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24 Hour Response
No Obligation

Frequently Asked Questions

Common questions about mezzanine finance

Mezzanine finance is subordinated debt that sits between senior debt and equity in the capital stack. it's secured by a second charge on the property and allows developers to increase total leverage beyond what senior lenders offer - often reaching 85-95% combined LTC.
Mezzanine finance typically costs 12-18% annual interest, reflecting its subordinated position. This can be structured as monthly interest, rolled-up interest, profit participation, or hybrid models. While more expensive than senior debt, it's significantly cheaper than equity dilution.
Mezzanine makes sense when: project returns exceed the cost of mezzanine debt, you want to preserve equity ownership, senior lenders won't provide sufficient leverage, or you need to bridge an equity gap quickly without diluting ownership.
Mezzanine sits behind (is subordinated to) senior debt in the repayment waterfall. It carries higher risk for the lender, hence higher interest rates. Mezzanine lenders typically take a second charge on the property and focus on project profitability rather than just security value.
Mezzanine lenders typically require demonstrated development experience and a strong project team. First-time developers may access mezzanine if supported by an experienced development manager or JV partner with proven track record.
Mezzanine lenders typically take a second charge on the development site, ranking behind the senior lender. They also require intercreditor agreements with senior lenders and often include profit participation or equity kickers.

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Need Mezzanine Finance for Your Development?

Get expert advice on structuring mezzanine debt to maximize your leverage. Speak to our team about your capital requirements.

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