Mezzanine loans are one of the commonly used sources of debt finance for Investments. These are loans which are structured to rank below the senior debt but above shareholder loans or equity. Mezzanine loans, like senior loans, attract interest rates commensurate with the level of risk associated with the business. Mezzanine loans are normally provided by third parties other than the equity investors. Typically, because mezzanine loans are treated as loans with liabilities which must be met irrespective of the performance of the business, they are valued on a stand-alone basis and serve as a reliable reference for Fair Market Value estimation because these are priced at arms-length.