The Blog

Musings on corporate finance, fund raising, debt capital and other matters

A measure of the value of a loan to the collateral against which it is secured. A €30million loan secured by a €50 million property would be described as a 60% LTV loan.

Debt that ranks below senior bonds or loans but above common equity. Junior Debt instruments are often called mezzanine loans but can also be structure as preferred equity.

A term for financial or corporate entities that pool money, to be used for the purchase of securities (including loan origination), real property and other investment assets. The most well-known entities are banks, insurance companies, pension and hedge funds, real estate trusts, investment advisors and mutual funds.

A type of hybrid-capital used to provide non-dilutive finance to rapidly growing firms. Typical growth capital investments will include a debt instrument, as well as an equity component in the form of a minority stake, preferred equity or warrant.

A loan-like transaction, where a company sell its trade receivables to a third party. The sale of the receivables usually occurs at a discount, with the difference between sale price and notional value providing an effective interest to the purchaser.

The provision of debt capital to small and medium sized businesses (SMEs and MSBs) by private debt funds. Loan sizes tend to be significantly larger than those available in peer-to-peer lending, typically ranging between £2 and £100 million. See also alternative finance and private debt fund