Mezzanine Debt: What is it, Uses, Benefits, Risks and Example First things first To understand mezzanine debt, you first need to grasp the concept of alternative investments, which I will explain shortly. However, let’s first understand the differences between traditional investments and alternative investments. Basically, investments are divided into two parts, i.e., Traditional investment and alternative investment. Traditional investment refers to investment in stocks, bonds, and cash, while all other investments, excluding stocks, bonds, and cash, are known as alternative investments. Alternative investments are divided into three parts: Private Capital Real Assets Hedge Funds Let’s dive a little deeper, and we will reach our concept of mezzanine loans. Private capital investment means investing in: Equity of private companies or in