The Extra Yard: Every roster has a player who is quietly working back into the rotation. As interest rates surged in 2022-2023, so did mezzanine fundraising, a fixed-rate market segment that typically sees a boost of activity when interest rates rise. In the subsequent 2+ years, mezzanine funds have felt sidelined, as fundraising shifted toward senior debt strategies. With markets expecting a more hawkish Fed, mezz funds are gearing up for a comeback.
- Still on the Sidelines: Mezz funds’ share of U.S. private debt fundraising spiked to 21% in 2023 and bottomed out at 4% in 2025, as the Fed reduced rates from 5.5% to below 4%.
- But off the Practice Squad: Over the past 12 months, fundraising activity has bounced off the lows (now at 6%market share), a trend likely to continue after the Fed hiked rates this month for the first time since July 2023.
Connect with Our Team
- Jonathan Zucker, Managing Director, Head of Capital Advisory, jzucker@Intrepidib.com
- Boris Zikratov, Director, Capital Advisory, bzikratov@Intrepidib.com
- Kevin Striepe, Vice President, Capital Advisory, kstriepe@intrepidib.com
- Anish Balabhadra, Analyst, Capital Advisory, abalabhadra@intrepidib.com
- Kyle Sutherland, Analyst, ksutherland@intrepidib.com