M&A fund is a very important part of private equity fund, which generally accounts for 60%-70% of the whole private equity fund raising and management scale, and occupies a very important position in private equity fund. M&A funds usually improve corporate governance by reorganizing the board of directors of the target company and closely monitor the operating performance of the target company.

Mezzanine capital is a proper term in mezzanine financing, which is aimed at the provider of funds in the financing process, that is, the investor.

Mezzanine capital is a kind of capital form between enterprise debt capital and equity capital, in which benefits and risks coexist, and its essence is long-term unsecured debt risk capital. When an enterprise goes through bankruptcy liquidation, the priority debt provider is paid off first, followed by the mezzanine capital provider, and finally the shareholders of the company. Therefore, for investors, the risk of mezzanine capital is between priority creditor's rights and equity.