What is Mezzanine
financing?

Marshbell Group was founded by an experienced team of finance professionals, to focus on credit and liquidity mezzanine investments.

About Us

Who are the Marshbell Group?

Debt finance specialists since 2016

Marshbell's objective is to create the best capital solutions which offer a win-win outcome for both our investors and clients.

Despite the UK's financial market undergoing major changes, our focus on managing risk and volatility, as well as having access to a wide range of both traditional and alternative sources of return, enables us to generate risk-adjusted returns.

Using a fact-based research approach to investment selection, Marshbell focuses on projects that have an excellent management team and strong potential for growth.

Marshbell Group would preferably deploy capital on a joint venture basis with an existing business, targeting an annual return of 8% net, after paying all investors that may have subscribed via Marshbell's investment instruments. Our primary goal is to provide fast turnaround funding solutions for our partners who may need access to capital at short notice. This approach enables our partners to overcome the borrowing covenants which are traditionally offered by the high street banks.

Mezzanine loans are a combination of debt and equity finance, most commonly utilised in the expansion of a company, for the purposes of acquisitions, growth, recapitalisation or management/leveraged buyouts. In the capital structure of a company, mezzanine finance is a hybrid between equity and debt, most commonly taking the form of preferred stock or subordinated and unsecured debt. It is treated as equity on the balance sheet.

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Our Due-Diligence Process

Let's see how it works

01 Initial Vetting Process

Does it suit our model?

High level analysis focus on:

  • Purchase price per square foot
  • Build costs per square foot
  • Exit price per square foot
  • Location
  • Structural configuration

02 Detailed Due-Diligence

What will the project cost?

If a project seems suitable, we liaise with planning consultants, building contractors and our development team to draft initial build costs. If these figures look promising, we refer to a quantity surveyor for full analysis.

03 Master Appraisal

Is the project profitable?

Our acquisition team then inputs the necessary data into a master appraisal to evaluate whether the project is profitable and meets our criteria. The decision is usually (but not solely) dependent on the Net Profit Margin before tax.

04 Building Appraisal

Is the project viable?

We negotiate a thorough cost plan which, if viable, is sent to planners for technical approval. An itemised accommodation list is sent for valuation to a network of agents and further site analysis is conducted, including SWOT, site inspection and estimates of required debt.

05 Final Review

The verified offer appraisal, floor plans, schedule of accommodation, offer letter and opportunity summary are then reviewed by the investment committee and a decision is made on whether to put forward a bid.

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