The financing consisted of a $75 million initial term loan facility and a $25 million delayed draw term loan facility. Proceeds of the financing were used to refinance SIM IP's existing credit facility, and support the company's ongoing IP monetization campaigns and portfolio acquisitions. As a key component of the financing structure, SIM IP simultaneously obtained a portfolio insurance policy from a syndicate of insurers. This novel structure enabled SIM IP to access attractive growth capital while providing the lender with an additional layer of credit protection alongside the underlying IP collateral.
SIM IP invests its own capital to acquire, structure, and capitalize on intellectual property, providing liquidity for IP owners while generating returns uncorrelated with traditional asset classes. SIM IP acts as both investor and transaction partner, connecting IP owners and creators with institutional capital markets participants. With a track record in institutional licensing and a proprietary technology platform, SIM IP sources, evaluates, and realizes value in intellectual assets across technology-driven sectors in the U.S., Europe, and Asia.
The deal reflects the growing role of IP as a distinct asset class in institutional capital markets. Reed Smith's work on IP-backed financings draws on the firm's corporate, finance, capital markets, intellectual property, insurance recovery, and tax practices — a combination few firms can field for transactions of this kind. The deal team featured attorneys across the United States and in London.
The Reed Smith team included partners Herbert Kozlov, David Hayes, Brendan Leanos, Lynwood Reinhardt, Lisa Chiarini, Nick Williams, Luke Debevec, and Ari Byk. The team also included counsel Zackary Callarman and associates Joshua Roometua, Alyssa Novoselac, Joseph Madonia, Helen Hsuan, Alexandra Byrne, and Olivia Hoh.
About Reed Smith
Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, we deliver smarter, more creative legal services that drive better outcomes for our clients. Our deep industry knowledge, long-standing relationships and collaborative structure make us the go-to partner for complex disputes, transactions, and regulatory matters.
