How to Create a Special Purpose Vehicle to Manage Multiple Asset Classes
Spreading investments over a variety of assets can be profitable, but it comes with quite a price. Operating real estate, private equity, venture capital, or alternative assets under multiple structures can become complicated very fast . This is one reason fund managers and investors opt for setting up a special purpose vehicle (SPV). Through the utilization of an SPV, they are able to pour disparate holdings into a centralized vehicle, making management, reporting, and compliance easier. This article explains how you can build an SPV that is specifically designed to handle multiple asset classes. Understanding the Role of an SPV A special purpose vehicle is a legal entity that exists for the purposes of holding and dealing with assets while immunizing risk. For those portfolios that contain more than one kind of investment, an SPV brings form and clarity. Rather than setting up discrete entities for each class of asset, for example, one for pr...