The mezz is dead, long live the mezz: it is amazing the difference a few big deals make. Earlier in the year with the buy-out market in a state of paralysis, the mezzanine suppliers, banks and independent funds alike were depressed almost to the point of giving up and going home. But now they have perked up.

Mezzanine is the tranche of debt that is also equity and its main use is in leveraged buy-outs. It carries more risk than senior bank lending but includes some element of equity, such as an equity warrant. Over the past 10 years, the instrument has steadily gained ground as its flexibility, reliability and privacy won admirers in Europe's burgeoning buy-out community.