Conducted due diligence for private credit fund IP-centric investment

Conducted due diligence for private credit fund IP-centric investment

We were instrumental in enabling a pair of private credit funds in conducting the due diligence necessary to make their first investment focused on intellectual property (IP).

At the time of the engagement, the clients were considering providing a credit facility to enable a non-practicing entity with an experienced licensing team to acquire a large portfolio and related licenses from a large semiconductor company. Due to recent merger and acquisition activity, the seller was no longer in a position to sustain the licensing program as it would entail licensing clients of its newly expanded product business. The clients were able to use our expertise to validate the quality and enforceability of the patent portfolio, to assess the remaining licenses, and to gauge the magnitude of the remaining licensable market.

As a result of our work, the clients were able to provide a mid-eight-figure credit facility secured by the portfolio and licenses. Due to the early successes, the portfolio entity was able to refinance within two years having returned the client a mid-teen rate of return.

Note: This work was performed prior to joining Stout.

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