Royalty Finance and Debt Solutions

What is Royalty finance?

An Alternative Source Of Permanent Non-Control Capital

“Permanent” means that our investment has no maturity date, so there isn’t any pressure to “repay” our capital, as is the case with debt. Nor is there any requirement to sell all or part of your business in the future in order to deliver a return on our investment, like equity.

“Non-control” means that we do not take any ownership in your business. Nor do we get involved in operational or strategic decision-making.

You Do Well, We Do Well

We generate a return on our investment by purchasing a small, fixed percentage of your company’s future revenues. So when your business does well, we do well. And if, for whatever reason, your business slows down for a period of time, you pay less.

More Flexible Than Debt, Cheaper Than Equity

Capital Step’s Royalty finance solution is specifically designed to be more flexible than debt and cheaper than equity. It also ensures that our economic interests are aligned with those of your business. Click here for an overview of our process.

Capital Step Senior Debt Solutions

In addition to its innovative Royalty Finance solution, Capital Step also provides Senior Debt products – either as part of a “Uni-tranche” alongside Royalty Finance investments, or stand-alone.

Capital Step Senior Debt typically contains the following features:

  • ✓3 to 5-year term
  • ✓Principal amortization, with interest-only period possible
  • ✓Low to mid-teen coupon, paid monthly
  • ✓Standard senior debt covenants and events of default
  • ✓Senior-secured loan
  • ✓No personal guarantees, board seats or warrants