Special purpose vehicles are a very frequently corporate structuring solutions, seen not only as an effective method of isolating risk but are also widely used to raise capital and hold a variety of asset classes.
As an off-balance sheet legal entity, a Special Purpose Vehicle (SPV) is created by a sponsor business. It is distinct and separate from the sponsor with its own assets, liabilities and legal status ring-fenced from the parent company or a family business.
Often created to fulfil a temporary objective for the sponsoring firm, SPVs are often used as a method of controlling the risks of a specific transaction separately from the rest of the firm. It is also possible to reallocate those risks or specific assets from the sponsor to other investors willing to take them on. This allows those investors access to investment opportunities which would not otherwise exist, and provides a new source of revenue generation for the sponsoring firm.
As a separate legal entity, should the parent company not be in a position to act for any reason, the SPV can carry out its obligations remote from the sponsor.
The typical legal forms of special purpose vehicles include companies, partnerships, limited partnerships and joint ventures.
The team at Highvern is experienced in all aspects of the creation and ongoing administration of a wide variety of special purpose vehicles. Our services include :
- Specialised drafting of documentation
- Fast track formation
- Provision of Administration, Company Secretarial, Directors, Registered Office
- Full accounting
- Maintenance of statutory records
- Management of regulatory and compliance requirements eg FATCA and CRS