The organizer analyzes the private equity market and finds a potential investment target. He then initiates the process of SPV creation, facilitates negotiations with counterparties on prices and transaction size.
Fund Manager (SPV Manager)
At the request of the organizer, the manager registers an SPV fund, creates documents to gather investors, ensures compliance with KYC/AML procedures, keeps accounts and manages workflow. The best practice is to hire the Fund Manager so the investors to be sure that the deal is being supervised and managed in the best and the safest possible way.
Investors (SPV subscribers)
Investors who agree to join the transaction deposit capital into a bank account. When the SPV raies the required amount of funds, Fund Manager orders to transfer the money to the seller, as specified by the organizer of the SPV and proved with the deal`s documents. In this way, every investor has the right to the share of stocks acquired by the fund in proportion to the subscription amount.