AFO · Head-to-head
Both are non-bank debt structures used above the senior layer. Mezzanine is traditionally a discrete subordinated layer with its own pricing and covenants. Unitranche from a private credit fund collapses senior + mezz into one blended facility — simpler administration, often quicker close, sometimes more expensive on a per-dollar basis but less expensive in total when intercreditor friction is priced in.
Side by side
The matrix below pulls directly from the catalog. Each row shows the same data point across both programs so you can spot the differences at a glance.
| Attribute | Mezzanine Debt | Private Credit / Unitranche |
|---|---|---|
| Capital type | Mezzanine / subordinated | Private credit |
| Family | Debt | Debt |
| Size range | $2,000,000 — $25,000,000 | $5,000,000 — No ceiling |
| Typical cost | 12–18% all-in (coupon + PIK + warrant). Usually unsecured or second-lien. | All-in 8–14% typical for unitranche; higher for stretched senior. Negotiated. |
| Speed to close | Months | Months |
| Eligibility | Established business with credible coverage path. Common in leveraged buyouts, MBOs, and acquisition stacks. | Mid-market or larger. Lender will set covenants tailored to the situation rather than off a credit-box checklist. |
| Use of proceeds | MBO / buyout, Acquisition, Expansion | MBO / buyout, Acquisition, Expansion, Refinancing |
| Status | Coming soon | Coming soon |
Choosing between them
Each side describes the scenarios where the program is the stronger fit. Most real-world deals end up in the “in common” section below — neither/nor.
When to choose
Pick unitranche when you want a single lender, a single set of covenants, and a faster close. Private credit funds set covenants to the deal rather than to a credit-box, which suits situations where the standard senior + mezz package would struggle on coverage or sector eligibility.
When to choose
Pick mezzanine when there's a strong senior bank willing to take the cheap layer and a separate mezz layer is genuinely cheaper than the unitranche blended rate. Common on plain-vanilla acquisition deals where the senior lender's relationship value justifies running two facilities.
The CPA can look at your specific situation and tell you in one twenty-minute call which program (or stack) is the right structure — and what providers will want to see before the first conversation.