Film glossary

Mezzanine Financing

Mezzanine financing is capital that sits between senior debt and equity in the recoupment waterfall, carrying more risk than senior debt and a higher cost.

Mezzanine capital recoups after senior lenders but before equity, filling part of the gap in a capital stack. Because it is riskier than senior debt, it is priced higher, often with a blend of interest and a share of upside.

Producers use mezzanine financing to complete a stack when senior debt and confirmed sources do not cover the full budget. Its exact terms and position are defined in the deal documents and should be reviewed with your own advisors.

Go deeper

Film Financing guideFilm financing is the work of assembling the money to make a film from several sources at once. Most budgets combine equity, debt and gap loans, pre-sales, tax incentives, and soft money into a capital stack, organized around a written finance plan and a clean data room that a financier can review quickly.

Related terms

Keep reading the glossary

Equity FinancingEquity financing is money invested in a film in exchange for an ownership position and a share of any revenue it earns.Gap FinancingGap financing is a loan made against the estimated value of territories or rights a film has not yet sold.Hard MoneyHard money is film capital that must be repaid on commercial terms, such as equity and interest-bearing debt.Recoupment WaterfallThe recoupment waterfall is the agreed order in which each source of capital is paid back from the revenue a film generates.

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This definition is educational and does not provide financial, legal, or tax advice. Consult your own licensed advisors before acting. FILM.FUND is a software and workflow platform, not a broker-dealer. It never handles money, never holds securities, never takes a percentage of any raise or sale, and never predicts returns.