A Segregated Portfolio Company ("SPC") is a cellular corporate structure, where segregated portfolios (of which the assets and liabilities housed within that particular cell is ringfenced from other cells) can be formed on a rapid basis.
In some jurisdictions, a SPC is referred to as a Protected Cell Company ("PCC") or a Series LLC.
SPCs & SPs:
In a SPC structure, the legal entity would be the Segregated Portfolio Company (which would maintain its status at the local companies registrar, such as the Cayman Islands General Registry).
Segregated Portfolios ("SPs") would act as a virtual portfolio, with the SP's own assets and liabilities legally separated from the general assets of the SPC. There is a specific methodology used for naming and Segregated Portfolios.
Contracts and contractual relationships will be entered into by the SPC, acting solely for the account of and on behalf of the particular Segregated Portfolio.
The Segregated Portfolio Company legal structure can be used for many purposes and in the context of different industries.
- Umbrella Fund Structures with Sub-Funds
- Deal-by-Deal VC Investments
- Individual Asset/Portfolio SPVs
- Asset Securitisation
- Captive Insurance