Ed Black Examines IP Finance in London Stock Exchange Group’s Gold Sheets Middle Market Review
IP transactions partner Ed Black (Boston) discussed intangible asset intellectual property finance in an article on the evolution of private debt solutions published in the London Stock Exchange Group’s Gold Sheets Middle Market Review.
Ed explains that in the last few years companies have been looking at data as a new and underutilized asset class to support debt financing. Collateralizing data can be difficult, involving new structures for controlling data to protect creditor rights, a rapidly evolving legal compliance environment for data, and difficult business issues around valuation, appraisal and monetization.
Ed notes that a more sophisticated market is making it easier for lenders and giving companies the ability to de-risk by providing deal structures and work for data, and appraisal and valuation models that work for data (and other IP). Recent examples involve demonstrating the value of data rights by attaching them to a specific revenue stream such as customer loyalty programs, among others.