October 21, 2010 1 Comment
A lot of the writing about “royalty” investing is meant from the point of view of passive, public-markets investors (e.g. with oil & gas MLPs). But when folks start looking for information about royalty with the qualifier “no dilution,” you can bet it’s in the context of a trade-off between royalty-based (or revenue-based) financing vs. equity (dilutive) financing.
So, what is it about royalty / revenue financing (RBF) that makes it non-dilutive to equity holders?