Glossary · Capital structure
Capital stack
The layered financing in a deal, from senior debt (lowest risk and return) up through mezzanine, preferred equity and common equity (highest).
Why it matters
It tells you who gets paid first and who carries the risk of loss.
Related
- Senior debt
The most secured layer of the capital stack — first claim on cash flow and collateral, lowest cost, typically 50–65% of cost.
- Mezzanine debt
Junior debt that sits between senior and equity in the capital stack, with a higher cost (typically 10–15%), used to fill the leverage gap.
- Common equity
First-loss, last-paid capital with uncapped upside.
Words are easy. A match is hard.
GPX turns one deal document into a ranked, briefed shortlist of the lenders and investors that actually fit — debt and equity.