When it comes to capital, Mezzanine Capital refers to the funds available to a company. Due to its unique legal and financial characteristics, these funds cannot be clearly categorized as either debt or equity.
Metaphorically, Mezzanine Capital acts as a bridge between debt and equity. While equity originates from entrepreneurs or shareholders, and debt is typically provided by financial institutions, Mezzanine Capital is often sourced from other financial market players to support various financing needs.