Understand SPVs: how they work, when to use them, investor eligibility, and trade‑offs versus blind‑pool funds.
A Special Purpose Vehicle (SPV) is a legal entity formed to hold a single investment or a narrowly defined set. SPVs aggregate investors into one cap‑table line and streamline governance for issuers.
Concentration risk, limited diversification, and deal‑by‑deal administrative overhead relative to multi‑deal funds.
Most U.S. SPVs rely on private offering exemptions (e.g., Reg D) with investor accreditation and appropriate disclosures.