Is there demand for bridge capital at the end of the transaction?

January 24, 2026

by a searcher in Oceanside, CA, USA

Anyone else see demand for short duration bridge capital towards the end of a transaction? Scenarios where the bank, equity provider, and seller are all tapped out and there’s a capital gap to get to the finish line. Key drivers are time, speed, rescue & the opportunity cost of not closing. Not broken deals, business is healthy. Product would sit in junior position, be completely non-dilutive, no warrants not traditional mezz, non -bank, short in duration and cash flow based. This is a space I want to search/raise in. If you have interest or commentary please comment!

Reply by a searcher
from University of KwaZulu in Vancouver, BC, Canada

Sounds very much like sub-debt, I have some experience here so happy to chat. The one thing to think about with ST financing that's subordinated is that the senior can stop the payment going out and will typically want to see other capital going in to replace it rather than it being paid out shortly after closing. Bridge financing works well if there is a timing gap that creates the need, but not so well if there is a structural gap (e.g., if the bank, equity and seller are all tapped out then that's structural, if you are looking to bridge until an asset is sold and excess funds will be allocated to the balance sheet then that's temporary). Another way of thinking about this is the senior will only let junior capital go out if their risk profile is unchanged.

Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA

^redacted might be able to help with Capital Gaps & Bridge Capital.

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