Duke Royalty agrees healthcare royalty financing deal with Marsh McLennan

(ShareCast News) - Royalty financing outfit Duke Royalty has signed an agreement with the consultancy arm of US insurance broking giant Marsh & McLennan to focus on healthcare royalty transactions in Europe.Oliver Wyman, a management consultancy arm of Marsh & McLennan, will offer royalty financing provided by Duke, which in June changed its name from Praetorian Resources and its investment strategy from natural resources to this newer alternative to debt financing.Duke's directors, which now include former Canaccord banker Neil Johnson as chief executive of Duke Royalty, bring expertise of the North American market for royalty financing, where companies pay back loans using a percentage of cash flow or revenue.The sector is worth around $30bn in North America but in Europe has yet to take off.Johnson said: "North America has built a number of highly successful and significant sized royalty companies in both the private and listed arenas. The Duke Royalty and Oliver Wyman collaboration will provide this progressive and compelling financing structure to the global healthcare industry."The collaboration would leverage Oliver Wyman's presence across 26 countries and with 200-plus professionals in its healthcare business, to initially focus on offering European healthcare companies a financing alternative via the US company's trusted name.Under the terms of the collaboration, Oliver Wyman will identify, analyse and assist in the acquisition of royalty interests for regulatory-approved, patent-protected ethical pharmaceutical and other healthcare products.Johnson said Duke looked forward to providing investors with "predictable revenues and a stable dividend".