In a less-than-stellar fundraising environment, some aspiring fund managers want to dip their toe into the fund waters by forming an SPV to invest in one high-conviction idea. An SPV in this context is just a “mini fund” - it’s an investment vehicle formed by a manager to pool capital from outside investors to make (usually) a single investment. 

Key Points From This Episode:

• Different ways in which people use the term “SPV”.
• Flashback to the Legislative Triangle from Episode 1 and why the kinds of SPVs we’re discussing today need to comply with all three sides.
• Why an SPV like this can often be launched faster and cheaper than a more complex fund vehicle.
• High-level legal cost breakdown on fund formation vs SPV formation, and the different buckets of cost you’re likely to incur.

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal advice. Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: [email protected]