How are royalty financing deals done?

Product has a set of projected cash flows.

Throw on some structure (upfront, royalties, etc).

Figure out NPV. That’s the offer.

Probably coverage team. Maybe PE team if they do private placement work.

Depends on the role i.e. whether bank is structuring agent, joint lead, co-manager, bookrunner, etc. Client usually provides projected cash flow data (sometimes internal, but with esoteric products typically you'll have a ops consultant FTI, A&M, etc. that maps out market estimates for royalties). ABS team usually has a technically oriented structurer who can do anything from simple projections to proprietary stochastic models, monte carlo simulations, etc. The models are morseo meant for calculating risk at tranche level based on defaults rather than trying to predict the cash flows. Anyways once that's done, rest of team packages it in nice pitchbooks and go through regular marketing/syndication process as you would in DCM, levfin, etc. Hope that helps.