ELI5: Explain Like I'm 5

mezzanine capital

Mezzanine capital is like a special kind of money that helps companies grow bigger and stronger. Imagine you are building a tower of blocks. You need more blocks to make it taller, but you don't have enough on your own. That's where mezzanine capital comes in. It's like a friend who gives you extra blocks to add to your tower.

But, mezzanine capital isn't just regular blocks. It's better because it comes with special features. For example, it's stronger than regular blocks and can support more weight. This means that your tower can get even bigger without falling down. Plus, you can use the new blocks to build even more things, like windows and doors.

One thing to remember is that your friend who gives you mezzanine capital wants something in return. They will own a part of your tower, like a share or a piece of the tower's profits. This is important because it means you and your friend are working together to make the tower grow and become better.