Sauvegarder Investment Management, Inc. ("SIM IP"), a global leader in intellectual property-based investment and monetization, today issued the following letter to shareholders.
David and I launched SIM IP in 2024 with a clear objective: to build a platform capable of unlocking substantial, repeatable value from intellectual property investments.
2024 was a foundational year. While relatively quiet operationally, it was critical for organizing our strategy, sharpening our vision, and assembling the core SIM IP team. Three external developments during the year materially reinforced our conviction.
First, the Unified Patent Court (UPC) in the European Union became fully operational, creating—for the first time—a credible, cost-effective path for patent owners to obtain injunctions in roughly 14 months. Second, President Trump's election in November 2024 signaled a meaningful shift in U.S. regulatory posture toward innovation and intellectual property, one we believed would improve steadily over time. Third, we observed a clear change in corporate attitudes toward IP, alongside improving public perception and rapid advances in technology that materially expand the scalability of IP monetization as a business.
By early 2025, it became evident that these regulatory and market shifts were accelerating far faster than anticipated. SIM IP moved decisively from planning to execution and began laying out the groundwork for its long-term operating model. During 2025, our key accomplishments included:
- Acquiring nine diversified patent portfolios comprising more than 2,000 patent assets across a broad range of technologies, including smart distributed monitoring systems for real-time event detection, extended reality and haptics, cloud-native automation, telecommunications, social networking systems, video technologies, LTE-Advanced, industrial enterprise management platforms, and real-time location technologies.
- Building an exceptional, highly experienced team within a deliberately flat organizational structure designed for speed, accountability, and disciplined execution.
- Generating more than $60 million in licensing revenue—up from zero in 2024—entirely outside of litigation.
- Establishing repeatable acquisition, evaluation, and monetization processes that position SIM IP to scale efficiently and predictably.
We are proud of these accomplishments, view them as early validation of the platform and believe they offer a clear preview of what is possible in 2026 and beyond.
What initially appeared as favorable regulatory tailwinds have now developed into a materially improved monetization environment. The UPC is functioning better than anticipated, with highly favorable decisions at both the trial and appellate levels, confirming it as the most efficient, cost-effective, and predictable forum globally for enforcing and monetizing IP rights. In the United States, after twelve months in office, the Trump administration has reversed more than a decade of damaging innovation policy and materially improved the enforcement outlook for IP owners. We expect these dynamics to persist in the EU for many years and in the U.S. at least through 2030. Importantly, we see sophisticated corporate counterparties responding rationally to this environment—engaging earlier and more constructively in meaningful licensing discussions.
While acquisition opportunities remain abundant as our reputation with IP owners is further enhanced, our focus has increasingly shifted toward monetization. In 2026, we anticipate SIM IP will generate more than $200 million in gross revenue, with operating margins in excess of 70%.
We intend to continue utilizing debt financing where appropriate and expect to close a substantial facility in the near term.
We are often asked about the timing of a potential initial public offering. Subject to market conditions and valuation alignment, an IPO as early as late 2026 or 2027 is possible. While valuation outcomes are inherently uncertain, management's incentives are explicitly aligned with shareholders. Recently granted restricted stock awards covering approximately 50 million shares for senior management vest only if SIM IP achieves and sustains a market capitalization of at least $1.5 billion, or in the event of a sale at or above that level. We believe this aligns management squarely with shareholders and provides a clear signal of the valuation levels we believe are achievable in the near term.
We are deeply grateful for your continued support and confidence in SIM IP. We believe we are still at the very beginning of what this platform can become, and we look forward to building significant long-term value together.
0 Comments