how do mezzanine funds make money 
a mezzanine fund is a pool of capital that seeks to invest in mezzanine finance for the purposes of acquisitions growth recapitalization and management or leveraged buyouts investors in a mezzanine fund receive a rate of return of 13 to 35 higher than offered on most forms of debt financing 4as with all pooled investments a mezzanine fund will make money off the interest received on its pooled investments as well as on profits from purchases and sales of various mezzanine financing instruments who provides mezzanine financing mezzanine debt is provided by lenders usually funds ranging in size from millions to billions specializing in such loans they look to make loans to companies that can safely service higher debt levels an ideal debt provider will offer a positive track record of outcomes over many years and will be willing to offer references of previous transactions the provider should also be willing and able to customize the debt structure to meet a borrower s needs and plans finally the ideal provider will be willing to work in your interest providing the best value for the amount price and flexibility of the debt raised lenders have often previously been involved with the company seeking the loan and each has experience of the other s reliability and ability to understand the business at hand 