Mezzanine Funding - Full Equity
1. FULL EQUITY – the mezzanine lender looks to lend the total balance between what the senior debt provides (say 70%) and what the development requires to complete (the remaining 30% - making up the total 100%).
They will charge the developer proportionately to the profit – as they are effectively an equity stakeholder, but anywhere between 30% and 50% of the profit is not uncommon – and in our opinion fair.