SPV Basics:

A "SPV" stands for "Special Purpose Vehicle", one of the simplest forms of a Wealth Container. 

SPV Structure:

SPVs tend to be structured as a company (such as the Cayman Islands Exempted Limited Company and the British Virgin Islands Business Company), although some Partnership forms with legal personality (e.g. Delaware Limited Liability Company or the Scottish Limited Partnership) may also be used. 

SPV Purpose:

As the name indicates, the primary use of a SPV is for one (or a limited number of) objective(s), which differentiates SPVs from private investment funds.

For example: 

  • Deal-by-Deal Investment, to invest in unlisted companies and startups.
  • Acquisition Vehicle, for mergers & acquisitions.
  • Asset Securitisation: Bankruptcy-remote vehicle or for holding assets off-balance sheet from the Sponsor.
  • Personal Holding Company, for holding illiquid assets.
  • Family Office/Trust structures, as an operating entity for holding assets, entering into legal contracts. 

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