In the financial world, investors are continuously eager to seek higher return from their invested capital. Mezzanine finance is an alternative financing method which is situated between equity and senior debt and thus an option to finance projects by using less equity and therefore earn higher return for shareholders. This master thesis focuses on the main characteristics of mezzanine capital in the corporate sector, and discusses essential criterias which have to be considered by mezzanine investors as well as by fund searching companies, when making a mezzanine deal. Furthermore, optimal situations for the usage of mezzanine finance will be analyzed, as well as compared with the business life cycle model, and finally evaluated in the empirical part. The analysis of the Global, European and Austrian mezzanine market and its latest developments are as well covered in the thesis. On the basis of qualitative expert interviews with Austrian and International companies the author mainly concentrates on two crucial topics which answers both research questions from the practical point of view. Firstly, the borrowers position in a mezzanine deal is investigated. And on the other side, essential requirements which have to be fulfilled by investors is discussed. The results of the expert interviews show that strong and successful management teams, mature businesses that are very profitable and have development potential are seen as very appropriate for mezzanine funding. Moreover, a constant and positive operating cash flow is of great importance. It also proves that mezzanine capital can be used in different situations as an alternative to traditional loan financing. As for instance for a LBO, MBO, MBI and for a Spin-off mezzanine finance is utilized. The key method of research is a descriptive literature review, where the author explores existing theories and researches about the mezzanine capital market around the world.