In one of the week's most distinctive manager profiles, Opalesque spoke exclusively with Dr. Christian Czernich, Founder and Managing Partner of Althera42, a London-based alternative investment platform applying royalty investing to European technology IP. The firm's thesis is that royalty finance - well-established in pharmaceuticals, metals, mining and music - has not yet been deployed at scale in European tech despite the sector representing over EUR 1 trillion in annual recurring revenues growing at 12-15% per year.

Czernich, a spin-off from Round2 Capital where he pioneered revenue-based finance across nine European countries, describes three structural barriers that keep competition low: banks cannot use royalties within their regulatory frameworks; most credit funds lack the specialised underwriting skills for revenue cohort analysis and true-sale structuring; and business owners in tech remain largely unfamiliar with the instrument.

Althera42 purchases 5-10% of an IP-based technology company's recurring revenues via a true sale, receiving uncapped monthly royalty payments for periods of up to 25 years. The strategy offers what Czernich calls a genuinely new asset class intersection - neither private equity (no exit dependency, no valuation risk)......................

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