When the US and Israel struck Iran on 28 February 2026, oil surged as much as 13% when
markets opened. The Dow fell nearly 600 points at the open. The VIX spiked as much as
31% intraday.
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One geopolitical event. Immediate, indiscriminate impact across asset classes.
This is the environment investors are navigating. Geopolitical tension, trade uncertainty, the
danger of inflation and shifting interest rate expectations are not going away. They are the
new backdrop.
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Most asset classes are deeply exposed to this:
- Public equities reprice on sentiment
- Private credit becomes increasingly unstable as we are coming to the end of a long
credit cycle
- Private equity does not deliver on DPI due to a fundamental mismatch in valuation
expectations between the PE sellers and the Buyers.

Royalties work differently.
Returns are linked to the recurring income a business generates each month. Not to what
multiples someone is willing to pay for the business, not to where interest rates are moving,
not to whether inflation is coming back and not to whether markets are calm or in panic.

A tech business with EUR 30m in recurring revenue continues generating that revenue
whether the VIX is at 15 or 50.
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This is what uncorrelated means in practice. Not a theoretical concept, a structural reality
built into how royalty investments are constructed.
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In a world where uncertainty has become permanent, royalties are an important alternative.

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