‘Silent Lien®

This product provides the senior status of debt without taking a collateral position in hard assets. Innovative Ventures created and implemented this component in our funds, providing two benefits to investors and fund managers:

  1. Increase market share and give funds new flexibility to finance more firms creating customer value through intellectual assets and human capital.
  2. Provide an exit option to an IPO or trade sale, and an early liquidity alternative to holding transactions to maturity; investments are pooled into a portfolio and sold in the secondary market.

Recycling early gains increases investment turnover and IRR with fewer investment dollars. Securitization of risk capital investments attracts more institutional money to SME investing.

Contact us to learn more about this product and its use in your program, to increase deal structure flexibility and expand the universe of companies for VC investment.