Oberland Capital seeks to acquire royalty interests by providing capital up-front or in a series of performance-based milestones to royalty owners such as companies, universities, research institutions, and individual inventors. Royalty owners can immediately realize value from their healthcare-related royalties through our financing solutions. Monetizing all or a portion of existing or future royalty streams provides capital for uses such as funding research, expanding facilities, and diversifying portfolios.
Oberland Capital targets investments in the form of structured loans that are collateralized by royalties, license agreements, and intellectual property. Principal and interest payments on the loan are derived solely from royalties received and are typically non-recourse to the royalty holder. Once the loan is repaid in full the royalty owner retains rights to all future royalties.
Revenue interests are financial arrangements structured to function as royalty interests. Oberland Capital can provide capital upfront or in a series of performance-based milestones to healthcare companies that are actively commercializing products in exchange for a percentage of future revenues from one or more products. Revenue interest financing is non-dilutive to shareholders and typically involves a less restrictive set of covenants than traditional debt.
Oberland Capital can provide financing to companies for the purpose of completing late-stage clinical trials. In this type of structure, Oberland Capital may receive milestone payments depending on the successful progress of the clinical trials plus non-contingent payments from royalty interests or revenue interests on existing commercialized products. This form of financing allows companies to accelerate R&D timelines and pursue a broader set of development projects.
Oberland Capital seeks to employ structures combining traditional preferred equity or debt instruments with the purchase of passive royalties or revenue interests. These hybrid structures allow for tailored solutions to meet our transaction partner's specific capital requirements.
In certain situations, Oberland Capital may make standalone investments in healthcare companies in the form of traditional debt or traditional debt in combination with preferred equity.