Special Purpose Vehicles (SPVs)

A Special Purpose Vehicle (SPV) is a separate legal entity created by a company to isolate financial risk. It is used for specific projects or assets, such as financing a large investment or managing a risky venture, without directly affecting the parent company's finances. By isolating assets and liabilities, SPVs help mitigate risks, secure funding, or achieve regulatory benefits. They are common in finance and corporate deals, enabling companies to organize complex transactions more efficiently while protecting their core operations.