Leveraging intellectual property and other intangible assets as collateral
Davis Polk partner and IP, Tech & Commercial Transactions head Frank Azzopardi and counsel Samantha Lefland and Chris Woller authored “Leveraging intellectual property and other intangible assets as collateral” in Financier Worldwide. In the article, they discuss the increasing market prevalence of leveraging intellectual property and other intangible assets as collateral in asset-backed financings, secured notes offerings and other securitizations. As current market forces have constrained capital markets and other financing sources, some companies are looking for novel ways to avoid a liquidity crunch. The use of intangible assets as collateral in this way has become attractive to many investors and lenders, and it has the potential for significant upside for all parties to the transaction.