Structured Debt for Real Estate Developers.
Not every real estate capital requirement fits a standard construction or land loan — larger tickets, unconventional security, or a position between senior debt and promoter equity all need a more tailored instrument. EquiFin structures mezzanine and hybrid debt for exactly these situations.
Mezzanine & Hybrid Instruments · Capital Stack Positioning · Private Credit & AIFs
Where This Becomes Relevant
- The requirement doesn't fit a standard product category — unusual security, multiple linked projects, or promoter-level financing needs.
- The developer needs capital that sits between senior debt and equity, optimising the overall capital stack rather than maximising a single facility.
- Ticket size or complexity exceeds what a standard bank or NBFC construction facility is built to handle.
- Speed or structural flexibility matters more than the lowest possible cost of capital.
What Lenders and Investors Evaluate
- Capital Stack Position — where the instrument sits relative to senior debt and equity, and what that implies for risk and pricing.
- Cash-Flow Waterfall — how proceeds are distributed across the capital stack as the project generates cash.
- Security Package — collateral across potentially multiple assets or projects, not a single standard mortgage.
- Sponsor Track Record — the developer's history of delivering projects and managing complex capital structures.
- Exit / Refinance Visibility — the credible path to take the structured facility out, given its typically shorter tenor and higher cost than senior debt.
How the Financing Is Approached
Structured debt is built around the specific gap in the capital stack rather than a standardised product template — the instrument's seniority, pricing and tenor are set to match the actual risk position it occupies, whether that's mezzanine debt behind a senior construction facility or a structured NCD secured across multiple assets. Because it typically carries higher pricing than senior debt, it's used deliberately, for the specific portion of the capital requirement that genuinely needs this flexibility, rather than as a default financing route.
What EquiFin Does
Capital Stack Design — identifying exactly where structured debt fits alongside senior debt and equity.
Instrument Structuring — setting seniority, pricing and tenor to match the specific risk position.
Investor Fit — matching the requirement to private credit funds and AIFs with genuine appetite for the structure.
Senior Lender Coordination — aligning the structured facility with any existing senior debt on the project.
Why EquiFin
- We design the capital stack first, then fit the instrument to the specific gap it needs to fill.
- We work with private credit and AIF investors who genuinely underwrite this risk position.
- We coordinate structured debt with senior lenders rather than treating them as separate processes.
- One point of contact from structuring through to disbursement.
Frequently Asked Questions
What is structured debt in real estate?
Structured debt covers financing instruments — mezzanine debt, structured NCDs and other hybrid structures — designed for real estate requirements that don't fit a standard construction or land loan, typically because of ticket size, an unconventional security package, or a position between senior debt and promoter equity in the capital stack.
How does structured debt differ from a standard construction loan?
A standard construction loan is senior-secured debt priced and structured around a defined construction milestone schedule. Structured debt often sits behind senior debt in the repayment waterfall, carries higher pricing to reflect that subordinated position, and is tailored to a specific capital-stack gap rather than a standardised product.
Who provides structured debt for real estate in India?
Structured debt is typically provided by private credit funds, AIFs and specialised NBFCs rather than scheduled banks, since it requires underwriting a bespoke risk position and pricing structure that falls outside standard lending products.
See what documents lenders typically ask for — Documents Required for a Corporate Loan →
Some Capital Requirements Need a Position, Not a Product.
Structured debt fills the specific gap in your capital stack that senior debt and equity alone can't cover.
Discuss a Structured Debt Requirement