This new fund is bringing the Wall Street playbook behind music royalties to tech

"Althera42 is a new fund launched by a former BlackRock executive and a longtime private markets investor. The fund, which hopes to raise $300 million, will invest primarily in tech companies in Europe and the UK. Althera42 does not receive equity stakes from its investments; instead, the manager gets a portion of future revenues. Royalties from artists like Fleetwood Mac or Justin Bieber have become big bets for investors. Althera42 wants to copy that playbook for the tech world."

"The new fund, launched by former BlackRock executive Caspar Macqueen and Christian Czernich, who founded private credit firm Round2 Capital, plans to provide working capital to companies building Europe's digital infrastructure - think data centers and cloud computing - without taking a stake in companies. "Althera42's royalty investments allow companies to access capital without diluting equity or taking on rigid debt obligations," a factsheet on the new firm published last week states."

"Focused on late-stage private companies, Althera42's deals will exchange capital upfront for a fixed percentage of future revenues over several years. The money is not a loan, as the manager is not looking to just be paid the initial capital investment plus a fixed interest rate. It is a bet on the revenue growth and scalability of the companies they find, without having to buy in at the sky-high valuations that top startups are demanding for equity."

Althera42, founded by Caspar Macqueen and Christian Czernich, targets roughly $300 million to fund 15–20 deals focused on late-stage tech companies across Europe and the UK. The fund provides working capital to firms building digital infrastructure such as data centers and cloud computing by offering upfront capital in exchange for a fixed percentage of future revenues over several years. The structure is not a traditional loan or equity purchase; it aims to combine venture-style upside with private debt–like cash flow. The firm plans quarterly distributions, charges a 2% management fee and a 20% performance fee, and seeks to avoid equity dilution and rigid debt obligations.

Read at Business Insider