<P> The primary owner of the company may not be willing to take the financial risk alone . By selling part of the company to private equity, the owner can take out some value and share the risk of growth with partners . Capital can also be used to effect a restructuring of a company's balance sheet, particularly to reduce the amount of leverage (or debt) the company has on its balance sheet . </P> <P> A Private investment in public equity, or PIPEs, refer to a form of growth capital investment made into a publicly traded company . PIPE investments are typically made in the form of a convertible or preferred security that is unregistered for a certain period of time . </P> <P> The Registered Direct, or RD, is another common financing vehicle used for growth capital . A registered direct is similar to a PIPE but is instead sold as a registered security . </P> <P> Mezzanine capital refers to subordinated debt or preferred equity securities that often represent the most junior portion of a company's capital structure that is senior to the company's common equity . This form of financing is often used by private equity investors to reduce the amount of equity capital required to finance a leveraged buyout or major expansion . Mezzanine capital, which is often used by smaller companies that are unable to access the high yield market, allows such companies to borrow additional capital beyond the levels that traditional lenders are willing to provide through bank loans . In compensation for the increased risk, mezzanine debt holders require a higher return for their investment than secured or other more senior lenders . Mezzanine securities are often structured with a current income coupon . </P>

Which of the following is an indirect investment in real estate