Mezzanine finance that closes the equity gap.
Mezzanine finance is subordinated debt that sits between a senior lender and the sponsor's equity. It is used when a senior facility covers most of the project cost but leaves a shortfall the sponsor cannot or does not want to fund from cash. Envision Private arranges mezzanine and second-ranking positions on behalf of wholesale investors, secured by second mortgage over the project asset with senior consent, and repaid from the same waterfall as the senior debt. Because the position is subordinated, pricing sits well above senior debt — the comparison that matters is against the cost of giving away project equity.
When it makes sense
- Bridging the gap between senior debt and available sponsor equity
- Funding a project where senior LVR or LCR limits leave a shortfall
- Preserving equity in a development instead of bringing in a JV partner
- Funding cost overruns or a variation during construction
- Releasing equity from one project to fund the deposit on the next
- Topping up a bank facility on a residual stock or completed asset
Indicative loan parameters
| Loan size | $250,000 – $20,000,000+ |
| Combined LVR | Typically up to 80% of value, or up to 85% of total development cost |
| Term | 6 – 24 months, aligned to the senior facility |
| Interest | Capitalised and repaid at exit |
| Security | 2nd mortgage with senior lender consent, plus sponsor guarantees |
| Exit | Project sales, senior refinance or completed-asset revaluation |
How the process works
- Capital stack review — senior terms, total cost, sponsor equity and the size of the gap.
- Indicative terms — written pricing and conditions within 24 hours.
- Senior consent — we work with the senior lender on a registrable second-mortgage position.
- Credit approval — valuation, QS report, feasibility and sales evidence review.
- Settlement and exit — advance alongside the senior facility; repaid from the sales waterfall.