Episode 055 - Steward-Ownership, Purpose-Trusts, and Exiting to Community with Zoe Schlag, Co-Founder and Managing Partner at Common Trust
The Ownership Economy
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Senior Debt or Mezzanine Debt?
In these sorts of deals, are you normally senior debt or like how we're typically coming in in a mezzanine position? I think if we look at the market and the landscape, I think there's actually a tremendous amount of capital that is interested in this senior position from banks, non-bank lenders. The kind of missing middle tends to be that mezzAnine piece because the capital stack for these deals typically includes senior debt with some seller financing. In the case where that does not exist, that tranche is typically absorbed by the seller and they'll just do a larger amount of seller financing.
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