Mezzanine investment is also a form of investment in private equity capital market, which is the evolution and expansion of traditional venture capital. In Europe and America, there are special mezzanine investment funds. If you use up as much equity and senior debt as possible, but there is still a big funding gap, mezzanine financing will provide debt funds with higher interest rate than senior debt but at the same time bear higher risks. Mezzanine financing is lower than equity financing. If the fixed interest rate of creditor's rights can be adopted, it will show the advantages of creditor's rights to shareholders. It is lower than the priority creditor's right, so it can show the advantage of equity for the priority creditor. This adds another layer to the traditional dual structure of equity and bonds. Convertible corporate bonds in China capital market belong to the category of mezzanine financing. The biggest feature of mezzanine financing is flexibility. By integrating the different characteristics of creditor's rights and equity, countless combinations can be produced to meet the various needs of investors and borrowers. Like senior debt, mezzanine capital requires financiers to repay principal and interest on time, and usually requires higher interest rate than senior debt. The income of mezzanine capital usually includes cash income and equity income. Mezzanine financing has relatively small restrictions on borrowers and relatively clear exit mechanism for lenders. Mezzanine loan means that mezzanine borrowers do not use project assets as collateral, but use their owner's equity in the project as repayment guarantee. The funds provided by mezzanine lenders are mezzanine loans. The mezzanine borrower takes the owner's equity (generally equity income) in the enterprise it holds as the guarantee. In this way, the mortgaged rights and interests include the borrower's income distribution right, thus ensuring that when the debtor defaults, the mezzanine can be paid off before the equity holder.