Mezzanine finance is subordinated debt finance that ranks in priority behind senior debt but ahead of trade creditors and equity. The market for mezzanine finance in Central and Eastern Europe (CEE), similar to many other markets, has been growing steadily in recent years. However, like many other types of finance, it has been impacted by the effects of the global credit crunch in the last couple of years.
Claire Scott-Priestley, a lawyer in Squire Sanders' Emerging Markets Private Equity Group, wrote the article "Mezzanine Finance in Central & Eastern Europe," which was published in Financier Worldwide's 2009 International Mergers & Acquisitions e-book "Executing Deals in the Economic Downturn."
In the article, Ms. Scott-Priestley considers mezzanine finance in CEE with some of the key industry players in the region and discusses how, despite the crisis of confidence and increased level of conservatism many investors are experiencing, specialist CEE mezzanine lenders have an opportunity to flourish due to the lack of available liquidity, the departure of some of the newer mezzanine players from the region and the general flexibility offered by mezzanine as a product.