PARTNERS FOR GROWTH

 WE PROVIDE FLEXIBLE CAPITAL TO INNOVATIVE COMPANIES AND THEIR INVESTORS  

Photo by Evgeny Sergeev/iStock / Getty Images
Photo by Evgeny Sergeev/iStock / Getty Images

 

industry focus

Our focus spans the life science and technology industries, two sectors where intellectual property (IP) is an integral driver of asset and enterprise value.  

Our broad experience in investing, technology evaluation, and product forecasting affords us a unique understanding of the value of assets in these dynamic sectors, allowing us to see value where others cannot.    

                TECHNOLOGY

LIFE SCIENCES                  

 

We have a long track record of partnering with companies and investors that create and commercialize life science products, with extensive experience spanning biopharmaceuticals, medical devices, and tools & diagnostics, 

 

We uniquely offer sizeable and flexible structured credit financing solutions to innovative technology companies, with a focus on enterprise software, data & analytics, semiconductors, and communications systems.  

 

TRANSACTION TYPES

Capital IP's proven strategy focuses on identifying opportunities where demonstrated commercial success has established underlying asset or enterprise value prior to our investment.  We tailor our financing solutions to each situation with the goal of preserving our partners' ownership interests, aligning incentives, and providing operating flexibility to build businesses of value.   

Our approach enables us to work flexibly to meet the needs of companies, investors, and entrepreneurs we partner with through a wide array of transaction structures:

 
 
 
KEY BENEFITS

We seek to fill a void in the capital markets where too often complexity and perceived risk penalize innovative companies with proven products.  We apply our team's deep domain knowledge to identify situations where our structured financing alternatives can deliver a lower cost of capital than traditional venture capital or growth equity and allow our transaction partners to avoid significant dilution at sub-optimal valuations.  We also target situations where venture loans and commercial banks are not attractive or viable options given the limited amount of debt capital offered, near-term principal amortization, requirements for substantial liquidity after investment, and the regimented criteria these lenders often focus on prior to extending credit.

STRUCTURED CREDIT

We offer revenue-generating companies in the life science and technology industries bespoke loans which offer multiple benefits:

  • Sizeable: $10-250M+

  • Flexible: Long-term maturity dates

  • Efficient:  Minimally dilutive

Structured credit offers an attractive financing alternative that allows companies to reach value inflection prior to a sale, IPO, or equity financing in order to maximize investor return. Fundamentally different than venture debt, our facilities are long-term, typically without amortization of principal prior to maturity.  

Our financings are designed to allow our transaction partners to realize the value of businesses they have built. We recognize that proprietary assets generating high margins are highly sought after by strategic buyers and represent collateral that can be unlocked in ways that are under-appreciated by traditional lenders.  

 

MILESTONES & ROYALTIES

We offer owners of milestones & royalty rights the ability to monetize or securitize future cash flows ranging from $10-250M.

Capital IP has the ability to structure its transactions in a variety of ways depending on the specific attributes of milestone & royalty payments and the funding requirements and circumstances of each royalty recipient  - whether an inventor, university, research institute, hospital, or company.  

Quantifying and appropriately valuing payment streams created through the licensing of IP is a core strength of our team and we work closely with royalty recipients to understand their entitlements and create an optimal financial structure.  

 

LEGACY ASSETS

We offer companies with mature, "non-core" assets upfront capital in exchange for products that are no longer strategic to their businesses.  

The partners of Capital IP have successfully acquired over $300M of these "legacy assets", which frequently are off-patent branded generics, from large pharmaceutical companies.  We have extensive experience partnering with entrepreneurial teams - typically industry executives with a deep knowledge of specific products - to acquire and manage these brands in ways that maintain and strengthen their value over time.  Our focus is on products in stable markets that offer highly predictable cash flows.

Our transactions enable our counterparties to invest in higher return activities such as acquiring new technologies, financing development projects. and meeting additional working capital needs.