Capital Royalty Securitizes Royalty Interest in Leading Vaccines

In early 2005, Capital Royalty participated in a purchase of a royalty interest in a leading children’s vaccine.  In 2006, Capital Royalty contributed a portion of that interest to a special purpose vehicle in exchange for an interest in the only competing vaccine. Simultaneous with that exchange, Capital Royalty completed a securitization of both royalty interests (by issuing non-recourse debt to capital markets investors).  The result: Capital Royalty returned the vast majority of its original investment, generating strong returns for investors. 

Capital Royalty continues to retain a royalty interest in both vaccines and has purchased additional interests in the securitized assets in the secondary market.