Special Purpose Vehicles
Strategic investment structures designed to isolate risk, optimize exits, and create tailored opportunities in constrained market environments.
Our SPV solutions provide client investors with precision exposure to specific assets while maintaining robust risk management and compliance frameworks.
Strategic SPV Solutions
Special Purpose Vehicles (SPVs) are independent legal entities created to fulfill narrow, specific objectives. In investment management, we utilize SPVs to isolate assets, manage risk exposure, and create tailored solutions for clients facing unique constraints or opportunities.
Our SPV structures provide precise exposure to targeted investments while maintaining strict separation from broader portfolios. This approach allows for customized participation in opportunities that may be restricted by fund mandates, lock-up periods, or regulatory considerations.
Client Benefits
- Risk isolation from core portfolios
- Enhanced liquidity options for restricted assets
- Access to specialized opportunities with defined timelines
With over a decade of experience structuring SPVs across multiple jurisdictions, our team combines legal expertise with investment acumen to create vehicles that meet both strategic objectives and compliance requirements. We manage all SPVs with the same rigorous oversight as our core funds.
SPV Applications & Structures
We deploy SPVs across multiple scenarios to solve complex investment challenges while protecting client interests.
Liquidity Solutions
For locked-up positions where traditional exits are restricted, we create 1:1 SPVs that allow secondary trading while maintaining the underlying holding.
Key Features:
- Bypasses contractual lock-ups without violation
- Enables early investor exits
- Maintains original investment terms
- Provides price discovery mechanism
Concentrated Positions
For oversized positions that exceed fund concentration limits, we spin out holdings into dedicated SPVs with customized risk parameters.
Key Features:
- Isolates position-specific risk
- Allows continued participation in upside
- Customizable leverage/hedging
- Optional co-investment rights
Regulatory Solutions
We structure SPVs to navigate complex cross-border regulations, tax considerations, and investor qualification requirements.
Key Features:
- Jurisdiction-specific compliance
- Tax-efficient distribution structures
- Investor qualification screening
- Reporting customization
Event-Driven SPVs
For time-sensitive opportunities like M&A arbitrage or distressed situations, we create dedicated vehicles with defined timelines.
Key Features:
- Catalyst-focused time horizons
- Pre-negotiated exit mechanisms
- Event-specific risk controls
- Asymmetric return profiles
SPV Case Study: Fintech Liquidity Solution
How we created liquidity for locked-up private equity positions through an innovative SPV structure.
Situation
We held a 12% stake in a Series D fintech company with a 24-month lock-up agreement. A secondary buyer offered to purchase 40% of our position at a 15% premium to carrying value.
Solution
We created an SPV holding exactly 40% of our position. The SPV units were offered to our LPs at carrying value, with simultaneous secondary sale to the buyer at premium price.
Outcome
68% of LPs participated, realizing immediate gains while maintaining remaining exposure. The structure complied with all contractual terms and set precedent for future liquidity events.
SPV Structural Advantages
Our SPV framework incorporates institutional-grade features designed to protect investors while maintaining flexibility.
Governance & Oversight
Independent Directors
Each SPV has at least one independent director with fiduciary responsibility to all investors, ensuring proper governance separate from our fund operations.
Audit & Compliance
SPVs undergo the same rigorous auditing as our core funds, with additional legal reviews to ensure structural integrity and regulatory compliance.
Investor Rights
Customizable voting rights, information access, and co-investment privileges can be structured to meet specific investor requirements.
Operational Framework
Capital Calls
Flexible capital commitment structures ranging from upfront funding to staged draws based on investment needs and timelines.
Distribution Options
Multiple distribution channels including in-kind transfers, cash settlements, or rollover options into subsequent vehicles.
Reporting
Institutional-quality reporting including quarterly valuations, risk metrics, and liquidity analysis tailored to each SPV's assets.
SPV Frequently Asked Questions
What are the typical fees for SPV participation?
Our SPV fee structure varies by complexity and duration. Most carry a 1-2% management/transaction fee and some with additional performance fees only applied to returns above hurdle rates. Setup costs are typically amortized across participants. We provide full fee transparency during the structuring phase.
How liquid are SPV investments?
Liquidity depends on the underlying assets and structure terms. Some SPVs have defined secondary markets or periodic tender offers. Others are illiquid until termination. We clearly outline liquidity provisions during onboarding and can often customize options to meet investor needs.
What's the minimum investment size?
Minimums typically range from $250K to $5M depending on the SPV's scale and target investor base. For certain strategic partners, we may accommodate smaller allocations or create feeder structures to aggregate smaller commitments.
How are SPVs taxed?
Tax treatment depends on the jurisdiction and structure. We primarily use transparent tax structures (such as Hong Kong or Singapore entities), where tax attributes are passed directly to investors. Our legal team offers jurisdiction-specific guidance during the due diligence process.
Explore Custom SPV Solutions
Whether you need liquidity for restricted positions, targeted exposure to specific assets, or specialized investment structures, our team can design an SPV solution tailored to your requirements.
Contact Our Structuring Team