Special Purpose Vehicles

A Special Purpose Vehicle (SPV) is a separate legal entity created by a company to isolate financial risk, typically for specific projects like asset financing or securitization. By transferring assets or liabilities to the SPV, the parent company can protect itself from potential losses or legal issues related to that project. SPVs allow companies to raise funds or manage risk more efficiently, often making transactions more transparent and manageable. They are commonly used in finance, real estate, and structured investments to optimize financial structure and risk management.