Are Junior Capital and Mezzanine Capital the Same?

As the definition indicates, mezzanine capital has historically been understood to mean subordinated debt that resides between the senior debt and equity on the balance sheet, hence the name mezzanine, a word that evolved from the Latin for “in the middle”. Junior capital in comparison is a much broader term than mezzanine and encompasses subordinated debt as well as preferred and common equity.

What are Non-Sponsored “Mezzanine” Transactions?

The meaning of the term “non-sponsored transaction” has undergone much change over the years as the mezzanine market servicing such deals has evolved. Originally, a non-sponsored deal was simply a traditional mezzanine (i.e., subordinated debt) transaction lacking a buyout fund sponsor, but has expanded in scope to include transactions requiring multiple tranches of junior capital.