Alternative Investments

Royalty Company

Definition

What is Royalty Company?

A company that finances producers in exchange for a percentage of revenue or output.

Example in practice

A gold royalty company receives payments without operating the mine.

Keep learning

A financing arrangement granting the investor the right to buy part of future production at a predetermined price.

Non-bank lending to privately held companies or assets.

Loans originated directly by an investment fund or non-bank lender to a borrower.

An investment combining debt and derivatives to create a defined payoff.

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