Short answer
The market is dominated by infrastructure-style funds and specialist real estate debt funds.
Where mezz fits in the stack
Mezz fills the gap between senior debt-fund or bank-syndicate debt (about 60% to 75% LTC depending on tenant credit and pre-leasing) and the sponsor's equity commitment. On a $1B project at 70% senior LTC, the gap is $300M, and the sponsor often prefers a smaller equity check than $300M to preserve fund-level concentration limits and IRR.
Pricing is fairly disciplined; the borrower's negotiation leverage is mostly on intercreditor mechanics, the cure right, the standstill period, and the conditions for the mezz lender to step into the borrower's position without senior consent.
Sources
- 2024 United States Data Center Energy Usage Report · Lawrence Berkeley National Laboratory (LBNL) · 2024
- Capital Markets Special Report: Insurance Industry CRE Mortgage Holdings · National Association of Insurance Commissioners (NAIC) · 2025-Q4