Royalty finance is a new means of investing that offers significant advantages over traditional equity or debt financing.
Investors provide capital in exchange for a percentage share of gross revenues of a company, for a specific length of time. Instead of waiting, sometimes for many years, for an investor exit based on profitability, investors begin to share immediately in the success of the company. Company owners benefit as well, since they do not have to surrender equity ownership in their company, or go into debt.
Pacific Royalties is building a Royalties Income Fund, to aggregate the diverse benefits of owning revenues in solid, proven private companies. The object is to deliver a substantial and growing current income stream to investors.
This effort is pioneered by one of the most creative minds in modern business, Arthur Lipper.