Foundation arranges mezzanine and hybrid capital facilities that bridge the gap between senior debt and equity, providing sponsors with the leverage required to complete transactions without excessive equity dilution. We structure profit participation rights, warrants and convertible components to align returns with risk at every tier of the capital stack. Mezzanine capital is a core component of our development finance and corporate acquisition mandates.
Property Mezzanine
We arrange mezzanine debt for residential and commercial development projects requiring leverage above senior LVR thresholds. Our property mezzanine panel can fund to 85–90% of total development cost in appropriate transactions, providing developers with the capital efficiency required to optimise equity returns on complex projects.
Corporate Mezzanine
For operating businesses undertaking acquisitions, recapitalisations or growth initiatives, Foundation structures corporate mezzanine facilities that sit behind senior bank debt. These facilities are designed with appropriate cash-pay and PIK components to match the business's cash flow profile and growth trajectory.
Hybrid & Blended Instruments
Foundation also structures hybrid instruments that blend debt and equity characteristics — including convertible notes with equity kickers, redeemable preference shares and participating debt facilities. These instruments are particularly suited to growth-stage businesses and pre-exit sponsor-backed companies.