Mezzanine vs Preferred Shares
Hi guys,
4 easy questions for the pundits here :) 1. Is it usual that a "growth equity investment fund" charges an arrangement fee? 2. What's the difference between a Mezz lender and Growth investor that wants to invest via participating preferred shares which resembles a PIK term loan + warrants) 3. Would a high company valuation associated with the preferred shares limits the ability of hte company to raise additional capital later on? 4. I am sure Mezz lenders would have a lien on the assets which the participating preferred shares holder wont have but from an economic perspective couldnt it be cheaper to just borrow from a mezz lender?
Thanks!
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