A Jurisdictional Guide to SPVs

Let us help you navigate the benefits and complexities of SPVs 

Special purpose vehicles (SPVs) have seen a significant increase in recent years as businesses seek to achieve higher levels of efficiency and security. Establishing entities that are legally distinct from a parent company can serve to mitigate risk, safeguard assets, and help attract investors.  

While many organisations create SPVs to function as simple holding companies, others employ them for the management and administration of securitised assets. Asset managers may also establish SPVs for the purpose of raising funds. 

SPVs can be utilised for a variety of purposes, ranging from routine operations to highly complex arrangements. However, the establishment and management of SPVs come with their own set of challenges. Whether formed as public or private entities, SPVs must comply with various reporting and regulatory requirements. The jurisdiction in which an SPV is established is a critical consideration, as tax treatments, costs, and incorporation timelines differ across regions. Certain jurisdictions have specialist expertise in setting up and administrating SPVs for specific objectives. 

In this guide we use our years of experience to highlight these benefits and look at SPV creation and maintenance in 13 key jurisdictions. We’ll describe the process of setting up an SPV and the factors to take into consideration before selecting a third-party partner. In short, we’ll help you cut through the complexity of establishing and using SPVs.