What's the difference between working as a direct lender and mezzanine lender? Thanks!

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Your place in the capital structure, typically. Direct lending is *typically* first or second lien term loans (eg secured investments) while mezz is unsecured. So different risk and return profiles for the two. Direct lending is usually more LBO and M&A, mezz can be for that as well, but also potentially for growth or work-out purposes.

For what I assume you are asking, working as a direct lender is going to be more straightforward deals and higher deal volumes, mezz would be lower deal volumes and higher complexity of deals

Just want to flag that "direct lender" is a catch all term that means exactly what it says (eg, a lender that works directly with the client). They could theoretically be lending anything, including mezz.

likesmart

Excellent answer

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