Capital Solutions Approaches For Commercial Stage Healthcare and Life Science Companies
SWK Holdings is an experienced finance company focusing on investment process opportunities in the global healthcare sector through innovative capital solutions. Capital Solutions enable a business or company to realize improvements in revenue and overall growth. The reliable capital sources provide the business with the necessary financial backbone to run their services and expand to achieve greater heights. The capital is provided to several business partners through the company balance sheet and the investment advisory clients, including institutional investors and family offices. The extensive management experience enables the management to understand business opportunities in the life science sector, specifically in healthcare-related principal investing and structured finance. The capital solutions approach include:
Investment Process
The investment process involves utilizing a disciplined and standardized underwriting process that comes in handy. Stress risk assessments and mitigation are some of the emphasis of the process, which further heightens the partner’s unique financing needs. Once the client signs a term sheet, the investment professionals work with a commitment to meet the aggressive timeframes that pull the client from the tight time-sensitive circumstances they find themselves in. The process involves opportunity identification which entails direct organization, brokers, and industry participants, which provide a more outstanding opportunity evaluation. Secondly, the funding consists of the term sheet, documentation, and closing, which handles the financial aspects and the necessary risk assessments.
Investment Criteria
SWK Holdings provides capital to several healthcare sectors, including biopharma, medical devices, diagnostics, life science tools, and chosen healthcare service and HIT companies. A few characteristics get considered when the investment process company seeks long-term partnerships with clients. One of the characteristics includes a product offering a compelling societal value through efficacy and safety improvement or providing savings to the healthcare system. Secondly, companies at a generally commercial-stage depended on the pre-approval situations having aligned and ethical management teams. With a selective consideration of large transactions, the investment process company focuses on transactions in the $5 – $20 million range. The criteria enable the company to work with the science companies, institutions, and investors, providing flexible and non-traditional sources of capital. The result of the process is the superior risk-adjusted returns on capital through the investment in marketed ethical product cash flow streams.
Creative Capital Solutions
The perfect combination of the company’s long-term investment strategy, permanent capital base, flexible mandate, and lack of regulatory constraints facilitate creative solutions. The combination enables the company to meet the needs of their investment process partners, ensuring that the entire client benefits from the process. One of the solutions is structured debt financings which are recourse obligations of the issuer and provide a more flexible source of credit capital than traditional lending institutions offer. Also, synthetic royalties or revenue interests enable the investment company to purchase new royalty interest in an existing revenue stream from the marketer. Another solution is the traditional royalty monetization which allows royalty owners to receive upfront capital for their expected future royalty payments.
