We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
Business Acquisition Financing
If your acquisition needs more capital than a senior lender will advance, mezzanine financing is often the missing layer. Mezzanine debt (also called subordinated debt, junior capital, or second-lien style capital) sits behind senior secured debt and ahead of common equity. In plain terms: it is the money that lets a sponsor or operator buy more business with less equity, while still giving the senior lender the comfort of a first claim.
This page lists ten mezzanine lenders that regularly support sponsor-backed and operator-led acquisitions, and it explains what they fund, what sectors they prefer, and how to approach them with a lender-ready package. If you want Financely to build the deal package and introduce your transaction to matching lenders, use the submission portal.
“Mezzanine” describes position and risk, not a single contract template. In an acquisition capital stack, senior debt is usually first lien and cheapest. Equity is last in line and takes the most upside and downside. Mezzanine lives in the middle. That “middle” can show up as subordinated notes, second-lien term loans, unitranche tranches with a junior sleeve, or structured preferred equity.
The reason this matters is waterfall economics. In a downside scenario, the senior lender gets paid first from asset proceeds and cash flow controls. Mezzanine lenders get paid after senior lenders, so they price higher and underwrite harder. In exchange, they can reduce the equity check, accelerate closing, and solve “sources and uses” gaps that would otherwise kill a deal.
Keyword reality check: many buyers search “mezzanine lenders for business acquisition loans,” but lenders may describe the same product as “junior capital,” “second lien,” “sub debt,” or “unitranche.” If your outreach only uses one phrase, you miss half the market.
Mezzanine acquisition financing is not “extra leverage for fun.” It has a job. The cleanest use-case is when the target has predictable cash flow, recurring revenue, and defensible margins, but the senior lender’s leverage limit (or collateral rules) leaves a gap. That gap can come from a higher purchase multiple, a large working-capital swing, a growth capex plan, or simply a seller who will not accept your timeline without more committed capital.
It makes less sense when the business is cyclical, customer-concentrated, dependent on one contract renewal, or has EBITDA that is “adjusted” beyond recognition. Mezzanine lenders do not want a story. They want evidence: quality of earnings, a coherent acquisition thesis, and downside protection through structure and covenants.
The list below is not a guarantee of approval, a ranking by performance, or an endorsement. It is a practical shortlist of active private credit platforms that commonly provide mezzanine, second-lien, or junior-capital structures for acquisitions. Always confirm current mandate, minimum deal size, geography, and industry exclusions.
| Lender | What They Typically Provide in Acquisition Deals | Sector Focus (What They Like to Fund) | Fit Notes for Buyers and Sponsors |
|---|---|---|---|
| PNC Mezzanine Capital | Subordinated debt and junior capital for acquisitions, buyouts, recapitalizations, and growth financing. | Niche manufacturing, value-added distribution, business services, and consumer services. | Strong fit for lower-to-middle market operator-led acquisitions where the senior lender is capped and the buyer needs a credible junior layer. |
| Crescent Capital Group | Private credit across the capital structure. In practice, Crescent is frequently associated with sponsor-backed lending where junior risk is priced explicitly. | Services-heavy, non-cyclical exposure, notably healthcare, software, and commercial and professional services. | Best fit when you can show resilient cash flows, strong unit economics, and “boring” downside behavior. |
| Audax Private Debt | Unitranche, second lien, and subordinated / mezzanine-style credit solutions supporting acquisitions, buyouts, and refinancings. | Diversified middle market, including business services, healthcare, software, consumer, and industrial categories. | Useful when speed matters and you want a lender comfortable with sponsor-backed acquisition cadence and add-on acquisitions. |
| Antares Capital | Sponsor finance structures that can include first lien, second lien, and unitranche. These often function as “mezzanine substitutes” in modern LBO stacks. | Broad middle market coverage, with visible activity in healthcare and technology alongside general sponsor-backed lending. | Strong choice for sponsor-backed acquisitions where capital certainty and execution process are the priority. |
| Ares Management | Direct lending solutions spanning first lien, second lien, mezzanine, and preferred-equity style structures, depending on fund mandate and deal profile. | Multi-sector sponsor-backed lending, with notable scale in healthcare-related private credit capabilities. | Best fit for larger, more complex acquisitions where you need a lender that can size and structure beyond “plain vanilla” junior debt. |
| Golub Capital | Sponsor finance, including structures that can involve junior risk (second lien / mezzanine sleeves) depending on the transaction and vehicle. | Technology, healthcare, financial services, and business services are recurring themes in public communications and expansions. | Often a fit for recurring-revenue or service businesses where underwriting can lean on retention, contracts, and measured downside. |
| Monroe Capital | Middle market private credit that can include mezzanine and second-lien style exposure, including sponsor-backed acquisition financings. | Broad sector lending with stated focus areas that include healthcare, technology, and business services. | Good fit when you want a lender comfortable with both sponsor and non-sponsor situations and a pragmatic approach to structure. |
| Oaktree Specialty Lending | A mix that can include first and second lien loans, unitranche loans, and mezzanine loans depending on strategy and market conditions. | Diversified portfolio exposure across multiple industries, with allocations that change over time. | Relevant when you need a lender with explicit comfort underwriting mezzanine and second-lien style risk in the middle market. |
| Manulife | Comvest Credit Partners | Senior secured, unitranche, second lien, and mezzanine capital for acquisitions, buyouts, refinancings, and recapitalizations. | Healthcare, industrial, business services, technology, and consumer sectors are repeatedly referenced in platform materials. | A strong fit when you want one platform that can flex across senior-to-mezzanine to keep the capital stack coherent. |
| Fidus Investment Corporation | Flexible structures including first lien, unitranche, second lien, mezzanine, and equity, often for lower middle market transactions. | Business services, healthcare products and services, industrial, value-added distribution, and software and tech-enabled services. | Useful for smaller acquisition financings where you need a junior layer sized for the lower middle market, not just “upper middle market minimums.” |
Most mezzanine lenders will not underwrite off a teaser and a purchase price. They will underwrite your ability to repay through the full credit cycle. That means you need a package that answers the hard questions before they ask them. If you want a reference workflow for acquisition packaging and sequencing, start here: How It Works.
At minimum, a lender-ready business acquisition financing package should include: (1) the acquisition story (what changes and why cash flow improves), (2) quality of earnings or a credible earnings bridge, (3) a clear sources and uses schedule, (4) a pro forma capital structure with senior and mezzanine terms, and (5) a downside case that shows what breaks first. Buyers who want to understand the mechanics and timing can also review: Business Acquisition Financing Workflow and Bridge Loans.
“Documents” means evidence, not bureaucracy. Expect to provide the LOI or signed APA, historical financial statements, a trailing twelve month schedule, customer concentration, debt schedule, and an operating model that ties revenue drivers to cash conversion. If you have an equity gap question, this guide is also useful: Down Payment for Business Acquisition Loans Explained.
“DSCR” is debt service coverage ratio, meaning cash flow available for debt service divided by required debt payments. “Attachment point” is the leverage level at which the lender’s capital starts taking loss. “Intercreditor agreement” defines how senior and junior lenders share collateral rights, payment priority, and remedies. These are not academic terms. They decide whether your mezzanine capital is priced, sized, and approved.
Rejections usually come from weak cash conversion, customer concentration, fragile gross margins, aggressive add-backs, or a capital stack that assumes perfect execution. If your purchase multiple is high, your lender will demand a stronger downside story, tighter covenants, and clearer post-close control of cash. This is why packaging matters as much as lender selection.
Financely is not a lender. We build the lender-ready deal package, clarify the capital stack, and introduce the transaction to matching lenders in our network. If you are evaluating non-SBA acquisition financing paths, see: Non-SBA Business Acquisition Loans. If you are an SME buyer evaluating SBA paths, see: SBA 7(a) Business Acquisition Loans for SME Buyers.
If you have an LOI or APA (or you are within days of signing), we can package the transaction and route it to mezzanine and junior-capital lenders that fit your deal size and sector. Submit your deal to request indicative lender feedback and a placement path.
Request A QuoteNot exactly. “Business acquisition loan” is a generic phrase that can mean senior bank debt, SBA-backed loans, unitranche, or private credit. Mezzanine financing describes where the capital sits in the stack: junior to senior debt and senior to equity. In acquisitions, mezzanine is usually used to reduce the equity check or to bridge a leverage gap when senior lenders stop at a conservative level.
Lenders generally prefer sectors where cash flow is repeatable and downside is measurable: software and tech-enabled services (especially contracted or recurring revenue), healthcare services with diversified payor mix, and business services with long-term customer relationships. Purely cyclical manufacturing, commodity exposure, or highly concentrated revenue tends to face tighter leverage and tougher terms.
They underwrite conversion of earnings into cash. That means working-capital swings, capex reality, customer concentration, churn or retention, pricing power, and whether “adjusted EBITDA” survives a third-party quality of earnings review. They also underwrite sponsor behavior: follow-on equity support, operational discipline, and whether the acquisition thesis is supported by data, not optimism.
Often the senior lender holds the primary lien on assets. Mezzanine lenders may have a second lien, a pledge of equity, and contractual protections through covenants. The intercreditor agreement governs remedies and payment priority. Even when mezzanine is structurally subordinated, lenders still expect enforceable controls that protect cash flow.
Speed depends on readiness. If your deal package is lender-grade, management is responsive, and QoE and legal diligence are organized, timelines can compress. If documents are missing, the model is inconsistent, or the purchase agreement has unresolved working-capital and indemnity issues, the timeline expands quickly. Packaging is the controllable variable.
No. Financely operates as an advisory and placement desk. We prepare the underwriting package, tighten the story with evidence, structure the stack, and route to lenders. Final credit decisions always sit with lenders and their committees, subject to diligence and documentation.
Practical takeaway: mezzanine and junior-capital approvals follow evidence, not enthusiasm. If you want speed and leverage, show cash conversion, downside behavior, and a clean capital stack.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
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All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
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Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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