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What is an SPV?
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Written by Wally
Updated over 6 months ago

SPV stands for Special Purpose Vehicle.

The SPV is the Real Estate Vehicle Company of which the subject who invests through Walliance becomes a shareholder in the case of Equity Crowdfunding projects, or lender in Lending Crowdfunding projects.

SPVs are created with the sole goal of raising funds by offering financial instruments to the public and directing the proceeds from a plurality of investors to a Target Company, usually already designated at the time of establishment. They are generally managed by a Sole Director, an experienced professional, who acts as the bearer of investors' interests to the Target Company.

Investment offers proposed on the portal will be managed through a Special Purpose Vehicle for the following reasons:

  • Limitation of liability: investing through a special purpose vehicle can limit the investor's liability in case of losses or any other legal problem. The investor's liability is limited to the amount of capital invested in the SPV.

  • Simplified management: using a special purpose vehicle to invest can simplify investment management. The SPV can take responsibility for managing the investments, eliminating the need for the investor to deal with the management of individual assets.

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