A special purpose vehicle (SPV) is a legal entity formed for a single investment or transaction. Unlike a blind-pool fund, investors in an SPV know the specific deal before committing capital.
Why It Matters
SPVs are the simplest way to pool capital for a single deal. They are common in angel investing, venture co-investments, and real estate transactions. Understanding when to use an SPV vs a fund shapes your entire operating model.
Key Details
- Usually structured as a Delaware LLC
- Investors commit to a specific, known investment
- Typically no management fee, or a lower fee than a traditional fund
- Carried interest ranges from 10-20%
- Requires its own Form D filing with the SEC
- Each SPV is a separate issuer for securities law purposes
For more on how SPVs compare to traditional funds, see the Funds vs SPVs Guide.
Capital Company handles SPV formation, investor onboarding, and reporting as part of fund administration.
This content is for informational purposes only and does not constitute legal, tax, or compliance advice. Consult qualified counsel for guidance specific to your situation.