With the volatility in the equity markets and an extremely low, fixed income environment, investment managers are seeking uncorrelated assets with less headline risk as well as higher returns.
Consider talking with us at Carthage Intellectual Capital Management. We are a new company that has developed a new investment vehicle–sale/license-back of intellectual property, such as revenue producing patent portfolios.
Founded in September 2011, Carthage uses novel business processes developed and patented by one of our partners to value and monetize revenue producing intellectual property. These form the basis of a new investment vehicle, similar to the sale/lease-back of real estate. The concept allows a company to raise capital without equity dilution or increased debt through the sale and license-back of its intellectual property, with a valuation based on the revenue stream those patents protect.
Simply, the company receives cash in place of an often undervalued IP portfolio and a license to continue to use the technology; the investor receives a royalty stream with early capital return, sheltered by amortization of the purchased IP, and secured by ownership of the IP. There is potential revenue sharing between investor and company from out-licensing, should this fit the scompany’s strategic needs.