With the financial backing of Deutsche Bank Alex. Brown, CAK Universal Credit Corp. plans to hit new asset classes going forward, and launch deals backed by everything from franchise loans to the revenue streams associated with beer breweries, said Robert D'Loren, president and chief operating officer at CAK.
Of course the alliance will allow CAK to continue, and even boost its cup-of-tea asset: intellectual property, removing the capital cap on its transactions.
"We view this as an opportunity to grow in areas that we haven't been able to lend to in the past," D'Loren said. "Deutsche has basically stepped in as our funding source. Our strategic alliance is now with them on a worldwide basis."
With Deutsche on board, CAK is launching two deals in the near term, worth $85 million and $135 million a piece: one a licensing agreement and the other a trademark copyright transaction.
D'Loren said the deals involve two public companies in two separate industries, but will, in structure, closely resemble last fall's $25 million Bill Blass transaction.
Deutsche Bank will finance CAK investment banking and restructuring transactions. These merger has "an unlimited capacity and can take down any deal size," D'Loren said. "Deutsche is making a commitment to this asset class."
Through this agreement, Deutsche will underwrite CAK's transactions and will also hold a minority equity position in the investment banking firm. Prudential Securities Corp., which in the past has financed CAK's deals, will remain a minority owner of the company.
"We are very excited to be involved in this strategic alliance with CAK Universal," said Rod Hutter, director of asset backed securities at Deutsche
"Deutsche would benefit because CAK Universal has a proven methodology for securitizing the intellectual property-related asset class," he added.
He also noted that CAK Universal would benefit because Deutsche gives CAK distribution opportunities on a global basis so that CAK can build its business.
Aside from the Bill Blass transaction, other notable CAK deals are the SESAC performing-rights-backed transaction which closed last October and the Leonard Cohen music royalty deal which priced the following month.