Yes, private companies can raise mezzanine capital. The investor
will look to receive an option for the company to buy back its
warrants or equity based on some methodology after a period of time
due to the illiquidity of the security (which may be the case for a
public company as well). Mezzanine capital is a good source for
companies looking to grow towards an IPO or sale. It also can be a
good source for acquirers looking to leverage their equity. Lastly,
it can be an effective method for owners looking to liquidate some
of their shares.