What is a Special Purpose Vehicle (SPV)?
- A single entity (typically an LLC) owned by a pool of investors
- Formed for the specific purpose of investing in an underlying asset – a “fund of one”
- SPV investors sign an Operating Agreement, Private Placement Memorandum, and Subscription Agreement
- Each SPV has its own separate bank account and EIN, and files its own tax returns and investor K-1s
- The SPV is terminated once all underlying assets have been distributed to investors
Engage Administration
- Engage utilizes a third-party technology platform for SPV administration services
- Engage & its vendors handle all legal, tax, compliance, administration, and accounting functions throughout the lifecycle of the SPV
- Engage acts as the point of contact between the portfolio company and the SPV investors, distributing information/reports, and serving on the Board of Directors when applicable