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OPM Capital

Mezzanine + Preferred Equity Blended Stack

Fill the gap between senior debt and equity — retain more of the deal.

Overview

Between senior debt (60–70% LTV) and true equity sits a layer of mezzanine debt and preferred equity (10–14% coupon, sometimes with equity kicker). Blending both lets sponsors close 90%+ of capital stack without giving up common equity. Standard on institutional CRE, value-add, and mid-market business acquisitions. Watch intercreditor / standstill terms.

Best fit
CRE syndicatorsMid-market acquirersValue-add operators
Estimated impact
Retain 40–60% more common equity per deal

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