The European royalty financing market is starting to gain traction and this firm has spotted the opportunity to replicate a business model that has a proven track record in North America (where the market for royalty financing is worth £50bn).
Investing in companies with a view to receiving royalty payments, is a new format to Europe. It’s a model that has been established in Canada, and AIM-listed Duke Royalty is now rolling out the model across Europe.
Alternative capital solutions provider Duke Royalty said Tuesday it had increased its interim dividend by 17%, or 0.1p per share, quarter-on-quarter to 0.7p per share, supported by a rising royalty portfolio.
Bank lending to small and medium-sized businesses has virtually halved since the financial crisis. New rules make it much tougher for banks to lend to most firms and many no longer even want to borrow from traditional lenders.