alseTIP's extensive knowledge and experience places it in a position to tailor the transaction to the client's particular situation together with appropriate cost of capital terms and conditions to reflect the corresponding risk.

alseTIP has assembled one of the most diversified and experienced teams in the world for the evaluation of IP structured finance transactions.

The process includes the analysis of the intellectual property rights:

Pioneering or breakthrough technology
Likelihood of acceptable non-infringing alternatives
Analysis of the economic expectations
Analysis of the exit opportunities
Determine the appropriate cost of capital

Investment Criteria

Positive track record of royalty revenues and solid growth projection.

Minimum current annual royalties amount of $1-3 million or growth projections in the near term to reach this minimum. No substantial regulatory or other hurdles to commercialization if products are not currently on the market.

Royalties are expected to be sustained over a period of at least 5 years with no significant R&D risk or dependency on the IP originator.

Existing solid licensing agreement with a strategic partner or advanced stage of negotiations towards such an agreement.

Significant IP position, truly unique technology, hard to replace or duplicate with evident demand in a growth market sector with limited dependency on major end customers.

Low risk of technology obsolescence.

Leading inventors in the requisite invention area.

Marketing, selling and manufacturing infrastructure available.

Royalty Interest can be de-linked (serve as collateral) from the IP originator through an assignment to a bankruptcy-remote entity.

The management of the Fund will continuously and actively monitor the investments to ensure compliance with the legal and business terms and conditions as well as conduct ongoing administration, supervision and management considered appropriate to each particular transaction situation.

alseT IP has identified four demonstrated exit strategies to enable realization of the Fund's investments:

1) securitization of a diverse portfolio of Royalty Interests,
2) individual asset sales to third parties,
3) sale back to the parties that originally created the Royalty Interests, or
4) hold to maturity.

The considerable depth of the securitized debt market renders both "individual asset" sales as well as sales of one or more diversified portfolios rich in Royalty Interests proven means to generate substantial and accelerated realizations for the Fund.