WhiteHorse may opportunistically make investments in mezzanine loans or equity interests, and in companies outside of the middle market.

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Unitranche, second lien and mezzanine loans initially will be made through Tamarix.

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The Carlyle Group, for instance, encompasses not only a buy-out fund, but also venture capital, real estate, mezzanine loans and a fund focused on Asia.

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The group is thriving now because they are able to borrow at low rates and lend, typically in the form of mezzanine and term loans, at higher rates.

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Mezzanine lenders typically make high-rate (18% to 24%) loans--unsecured in many large projects--to the converter to help him cover the building's mortgage while the property is in flux.

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Over the past two years, mezzanine has hovered in the 12-14% range, all-in, while unitranche loans historically have priced in the 9-10% area.

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