Caspar Macqueen, a former BlackRock executive, and Christian Czernich, founder of Round2 Capital, launched Althera42, a fund aiming to raise $300 million. The fund will invest in tech companies in Europe and the UK without taking equity stakes, focusing on revenue shares instead.

Althera42 mimics the model of royalties investing seen in the music industry, providing working capital to tech companies building Europe’s digital infrastructure. The firm plans to exchange capital for future revenues over several years, offering an alternative to traditional equity investments.

The fund targets late-stage private companies with annual revenues between €10 and €100 million, prioritizing firms with recurring or licensing-based models. Althera42’s unique approach combines the upside of venture capital with steady cash flow, aiming to create a new asset class in the market.

Macqueen envisions most investments in Europe, with possible North American deals. The fund plans to have offices in London, New York, and a location in continental Europe. Althera42 seeks to provide strong returns for investors while revolutionizing the concept of royalties investing in the tech sector.

Read more at Yahoo Finance: This new fund from an ex-BlackRock exec is bringing the Wall Street playbook behind music royalties to tech