Year: 2015

PIPS Program

PIPS Program (Protected Intellectual Property Securitization) Newlight Capital structures debt around royalty-bearing intellectual property. This type of debt financing alternative is safer than a traditional securitization and generally has a longer term than a CIPAR or CLIP transaction. In order to qualify for this structure, the organization must currently be generating royalty revenue pursuant to

Deal Characteristics

Deal Characteristics Newlight’s transactions are typically structured around technologies that have the following characteristics: a technology protected by patent or other intellectual property a technology which must undergo vigorous underwriting by Newlight a technology that represents a global market opportunity deal size between $5 -$20 mil with a loan to value of less than 20%. typical transactions have 3-5

CLIPs Program

CLIPs Program (Collateralized Loans on Intellectual Properties) The CLIPs program is specific to publicly traded or soon to be publicly traded companies and has an equity component not found in the CIPAR transactions. CLIPs may be used as an alternative to PIPE transactions. These transactions typically have an additional element of risk associated with the

CIPARs Program

CIPARs Program (Collateralized Intellectual Property Appreciation Rights) A CIPAR is a structured investment in an intellectual property portfolio which has a clear path to commercialization, and is not generating current cash flow. From the investor’s perspective, the instrument generates a return consistent with a private equity investment while providing current income to the investor. The