Flexible Capital to Bridge the Gap Between Senior Debt and Equity

We specialise in arranging Mezzanine Finance, a powerful funding tool that enables property developers, investors, and business owners to access additional capital without diluting equity or overextending senior debt. If you're seeking to stretch your development leverage, acquire a site, or scale your property portfolio, mezzanine funding could be the strategic solution you need.

What is Mezzanine Finance?

Mezzanine Finance is a hybrid of debt and equity financing that sits between senior debt (usually from a bank or primary lender) and the borrower's equity. It typically carries a higher interest rate than senior debt but offers more flexibility in terms, repayment structure, and security.

Because mezzanine lenders take on higher risk, they may secure the loan via:

✅ A second legal charge on the property

✅ A corporate guarantee or debenture

✅ Profit participation or equity kickers (in some cases)

When is Mezzanine Finance Used?

✅ To fund the shortfall between senior debt and equity

✅ To increase gearing (loan-to-cost) on development or investment projects

✅ To accelerate project delivery or acquire multiple sites

✅ When borrowers want to retain more equity or avoid joint ventures

✅ During pre-construction or pre-sale stages when senior lenders are cautious

Benefits of Forward Funding

For Developers:

✅ Access Capital Upfront – Receive significant capital contribution before construction begins, improving cash flow.

✅ De-Risk Your Exit – Secure a guaranteed buyer before building starts.

✅ Focus on Delivery – With the exit secured, developers can focus on cost-efficient delivery and programme management.

For Investors:

✅ Custom-Built Asset – Influence design and specification to match long-term investment criteria.

✅ Attractive Returns – Benefit from income-producing assets at favourable yield-on-cost ratios.

✅ Avoid Development Risk – Construction risk is passed to the developer via a fixed-price, fixed-date turnkey agreement.

Advantages of Mezzanine Finance

✅ Boost Leverage – Fund up to 90% of total costs

✅ Preserve Capital – Invest in more projects with less equity

✅ Accelerate Growth – Take on larger or multiple developments

✅ Flexible Repayment – Roll-up interest until exit

✅ Retain Control – Avoid giving away equity in a JV

✅ Access Hard-to-Reach Deals – Unlock value in complex or early-stage projects

Ideal Projects for Mezzanine Finance

✅ Residential or mixed-use developments

✅ Office-to-resi conversions

✅ Refurbishments or value-add acquisitions

✅ Large-scale BTL or HMO portfolio expansions

✅ Commercial or semi-commercial properties

Why Choose JMS Capital Partners?

✅ Whole-of-Market Access to private mezzanine lenders, funds, and family offices

✅ Expert Structuring to blend senior debt, mezzanine, and equity seamlessly

✅ Development Appraisal & Cashflow Analysis included

✅ End-to-End Support from terms to legal drawdown

✅ Proven Track Record of delivering fast, competitive mezzanine solutions