A special purpose vehicle (SPV) is a legal investment fund created by a limited liabilities company in the U.S. to make investments as a single vehicle.
SPV can be formed as a stand-alone entity (LLC) or a Series of Series LLC.
- Investments targeted by an SPV include real estate, finished or under construction, stocks, or any other - assets.
- An SPV can have either accredited investors or not-accredited investors (with limitations).
- The legal entity that creates an SPV cannot claim assets within this SPV but doesn’t bear any responsibility owed to an SPV.
- An SPV is serviced by the Fund Organizer, who gathers investors and finds investment targets, and the Fund Manager, who facilitates paperwork and accounting.