A private equity firm that makes debt-based investments is referred to as a(an)__________ fund.
A)fixed income
B)fixed equity
C)orchestra
D)mezzanine
E)balcony

Question

Quizplus · Accepted Answer

A mezzanine fund is a type of private equity firm that provides financing through a combination of debt and equity investments. It is often used to finance buyouts or growth capital for companies that are too big to be financed by traditional bank debts, but not large enough to access public market financing. Mezzanine funds typically have a higher risk profile than traditional fixed income funds, but offer higher potential returns to investors.

A Private Equity Firm That Makes Debt-Based Investments Is Referred