Michael Saei is an experienced financial executive who currently serves as the president of First Financial Capital in Los Angeles, California. A lifetime appointee to the Special Business Study Foundation, Michael Saei specializes in financial services ranging from portfolio acquisitions and energy industry financing to debt and mezzanine financing.
A type of financial tool used for loan and debt strategy, mezzanine financing also combines aspects of equity financing. Equity financing, which can be public or private, is a financial tool that is used to raise assets by selling shares of an organization. Mezzanine financing adds an additional element in that the lender has the right to assume shares or ownership in a firm in the case of default.
Mezzanine financing is considered to be a high-risk venture, due to the fact that it typically carries an interest rate of 12-20%. However, benefits of mezzanine financing include tax benefits and flexible repayment strategies. Companies that utilize this form of debt financing are most often large firms with a proven track record of success, but others include those with a clear plan to profitability or expansion.
