Senior debt

Senior debt is financing provided by a lender in exchange for a first position mortgage on a collateral property.

If a project or entity goes bankrupt any remaining funds, dissolved assets, or other available sources of value must first repay the senior debt lenders ahead of all other creditors.

Senior debt is one of the four major components of the capital stack and it is generally considered to be the least risky from a risk/return perspective. Therefore, senior debt also offers the lowest returns.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.