April 25, 2024
Financing Structures
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Finance companies help individuals, and corporations get good investment solutions for their businesses, enabling them to grow their capital value. SWK Holdings is a finance company which a specific focus on the global healthcare sector, providing innovative capital solutions to life science companies, investors and institutions. The capital gets provided to the business partners through the company balance sheet and investment advisory clients, including family offices and institutional investors. The SWK Holdings investment criteria have a broad capital base, making them the choice partner for life science entities seeking non-traditional and flexible capital sources.

The SWK Holdings management team has an immense experience in healthcare principal investing and structured financing. The immense experience gives them a deep understanding of the business opportunities within the life science sector. When it comes to the company investors, the professionals provide a superior risk-adjusted return on the capital through investment in marketed ethical product cash flow streams. The professionals have an unmatched skill set that enables them to see value where others do not, and the solutions get tailored to preserve the partners’ ownership interests.

Investment approach

Investment is a risky process that requires adequate planning and research to prevent the possibility of incurring losses. The professionals have a well-laid down SWK Holdings investment criteria, enabling them to execute everything effectively to maximize the output and improve the capital of the various businesses they work with. The approach includes clinical data review, competitive environment review, financial modelling, market strategy review, industry expert consultation and IP review. Every stage gets handled with caution and care to enable them to achieve the objective of the whole process without incurring avoidable losses.

Investment process

SWK Holdings uses a disciplined underwriting process that emphasizes its partners’ unique financing needs. The process gets done while stressing the SWK Holdings investment criteria risk assessment and mitigation. Everything gets done with an understanding of the time-sensitive circumstances and the ability to meet the aggressive timeframes with the transactions completed within four weeks after signing a term sheet. The process involves opportunity identification and funding, which are several processes that get handled in both areas. In the opportunity identification, some factors that get looked into include the direct origination, brokers and industry participants. On the other hand, the funding includes term sheets, documentation and closing.

Creative capital solutions

The SWK Holdings investment criteria use several factors to meet the needs of their partners. The company’s long-term investment strategy, permanent capital base, flexible mandate and lack of regulatory constraints faced by traditional banks allow the professionals to tailor their clients’ individualized investment structure. Using structured debt financing, companies with commercialized products receive a more flexible capital credit source than the traditional lending institutions. On the other hand, the synthetic royalties or revenue interests, SWK buys new royalty interests within an existing revenue stream from the marketer. The third part is the traditional royalty monetization which allows the owner to get upfront capital in exchange for their expected future royalty payments.

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