There are many great mezzanine debt providers in the US and Canada. To narrow them all down to a list that names the top is akin to making a list of your favorite foods. There are many categories of note when ranking the best. Loan volume, number of closed deals, equity sponsored deals versus non equity sponsored deals, Buy-outs versus non buy-outs, industry type, degree of deal difficulty, deal risk, etc. The best mezzanine providers in the US and Canada are those who are visionary in their application of mezzanine principles in generating new and unique ways of funding companies. They are not necessarily the groups that are putting money behind traditional, private equity backed deals. They are not the mezzanine debt providers doing rote structures or plain vanilla loans. They are the intrepid few who see their role in a more abstract context, that of funding into future growth of an enterprise.

The growth is often scaling up a proven concept or the backing of a plan of acquisition. There are always well grounded assumptions and historical operating metrics used to develop probability of success for each course of action. Yet, beyond the numbers and the statistics, lies the ability to size up the character and quality of the management team. This is where the best mezzanine debt providers in the US and Canada are. The quality and character of the management team has a disproportionate impact on the future growth outcome. It's hard to measure this in any way but on an intuitive basis.

A different type of skill set is needed to measure this intangible aspect of a deal. Lenders, are typically numbers guys, and not well versed in deploying their emotional quotients in this type of exercise. The top mezzanine debt providers can detach themselves from their customary lender's frame of reference. They can adopt more of an entrepreneurial mindset and see the upside potential of the deal. This makes them more than lenders. They are true financial backers of an entrepreneurial vision. When a mezzanine lender can make this jump, they are transcending their role as a lender and become a true partner providing risk capital. If the venture does not fully succeed, they are unlikely to get all of their money back. Yet, due to their belief in the deal, they don't need to be the controlling investor. All of their money is priced like a loan with a small upside in the form of an equity warrant.

These types of firms are the ones providing mezzanine funding directly to companies, doing non-private equity sponsored deals. These firms can be private funds, SBIC's or Business Development Corporations. Firms such as Praesidian Capital and Main Street Capital are a few of top mezzanine loan providers in the US.  There firms share a number of common elements that make them unique. They have good sized funds. They have small group of investment decision makers. They can make quick decisions and close on a reliable basis. They are relationship based and supportive throughout the loan closing process. Morever, these firms are good people who have values and go the extra mile for their borrowers.