Back-Leverage 101: A Fund's Mezzanine Position, Built From a Bank's Line of Credit

Depending on your perspective, you may call it back-leverage or you may call it ‘loan-on-loan’ financing. Either way, loan-on-loan financing enables a fund to achieve higher leveraged returns while being an attractive risk-adjusted, capital-efficient way for a bank to lend. This primer is designed to explain how…