A royalty is a contractual payment made for the use of an intangible asset such as copyrights, trademarks, or brand images.  For example, if a clothing company wants to make a t-shirt with a well-known logo or movie character on it, the t-shirt manufacturer must pay for the right to use that logo or character on their t-shirt.  

The manufacturer must sign a royalty agreement with the company that owns the rights to that logo or movie character.  Consequently, a portion of the proceeds from the sale of every t-shirt must be paid to the company that owns the rights to that logo or movie character.

The Cash Flow Royalty LP is buying a fixed rate royalty in the revenue generated by a Licensing Company that licenses the Copyright to multiple entertainment properties.  

An intellectual property creates many kinds of copyrights that are derived and based on an original work of authorship.  For example, a novel can be created into a movie (Film Rights).  A movie can then get created into a musical (Grand Rights), and merchandise can be produced based on the musical or movie (Merchandising Rights). 

The Cash Flow Royalty LP will receive a fixed rate royalty derived from the revenue generated by, but not necessarily limited to, the licensing of these kinds of Rights.