What is Special Purpose Vehicle (SPV) Company?

What Is an SPV (Special Purpose Vehicle) Anyway?
In this video I try to explain in very simple way, what exactly is SPV. Generally, If the SPV fails, the parent company is unaffected. If the mother parent goes bankrupt, the SPV is protected.
A SPV, often known as a special purpose entity (SPE), is a subsidiary established by a parent company to mitigate financial risk. Its legal status as a separate company guarantees that it will be able to meet its obligations even if the parent firm fails. Because of this, a special purpose vehicle is frequently referred to as a bankruptcy-remote entity.

[@leratorambau9432]

VERY GOOD EXPLANATION. THIS HELPED ME FORM MY EXAM.WELL DONE

[@masturafadzillah1966]

Thanks your explanation is very easy to understand!!

[@sinyeelaw5103]

thanks! understand clearly after watching this

[@mediacom3518]

very clear explanation, thanks

[@ashanieash4773]

thanks for this video. I actuually have a presentation on it for financial service class

[@anushapa4305]

Great explanation. Thanks!

[@vaitelixar2010]

Thank you for making it so clear

[@SH_12389]

Example made the concept clear....thank you

[@humility9345]

Thanks Asif, your delivery is of high quality and makes any concept really easy to understand!

[@Stuployer]

Glad you think so!

[@binrasheed8013]

Wonderful explanation

[@randeedelossantos889]

thanks very precise and easy to understand..

[@Stuployer]

Glad it was helpful!

[@Danishletslearn]

Very good explanation. Most underrated educator like me 😁

[@yasirhusseinmahmood4390]

Thanks a lot

[@priycal]

Thank you

[@jai_96c]

Awesome

[@Dhruv_Sahu.]

Thank u sir😊😊

[@DWAIPAYANPAULCLASSES]

Thanks bro.

[@hata5232]

For enlighten ⬆️

[@ntcuong01ct1]

With a SPV company, how do they securitize assets so that they can collect money from investors and transfer it to the parent company?

[@Stuployer]

As per the terms, the investor are aware of the structureing of investment.

[@Ultimatepawn]

Great explanation. Whats in it for the bank in investing in the spv of there's no guarantor like the first example?

[@Stuployer]

The concept is simple but in reality you need to hire lawyer to get these things done.

[@bharathnatarajan9321]

Can you explain about intermediate and blocker funds

[@Stuployer]

Intermediate funds are designed to be held for a period of several years, and they invest in a variety of assets such as stocks, bonds, and cash. These funds are typically less risky than aggressive growth funds, but they offer the potential for higher returns than more conservative funds.
Blocker funds, on the other hand, are used to block or inhibit the flow of assets from one part of a portfolio to another. These funds can be used to meet specific tax or regulatory requirements, or to protect against potential losses in certain parts of a portfolio. Blocker funds are often used in conjunction with other investment vehicles, such as trusts or limited partnerships, to manage the distribution of assets within a portfolio.

[@bharathnatarajan9321]

@@Stuployer Thanks for your response. So you mean we can use blocker fund in Master feeder structure to transfer funds from offshore to onshore fund.
Besides, i have one more doubt on intermediate holding.. like i have seen some of the fund structure where the money pass through (Limited Partnership - Intermediate holding - SPV - Assets) why they use Intermediate holding here.

[@tigerbhurtel4777]

Why would the banks invest 9 million in that company if there is no security of loan? Thanks
And the owner invests only 1 million?

[@Stuployer]

It was an example, well the bank do the due dilligence and generally investor don't form the company without proper feasibility

[@brianherman3995]

where. how can I set up a spv?

[@Stuployer]

You need to consult a lawyer to do so.

[@mayurshrivastava4798]

how to make a spv

[@Dhruv.Rajput]

❤❤❤❤❤❤❤❤

[@Dhruv__Rajput]

❤❤❤❤❤❤❤

[@Dhruv__Rajput]

❤

[@user-ps5bq6wv4k]

the bank would not lend to SPV for exactly the same reason

[@sumitkumar-kl4rk]

So that's why so much corruption is there and always some company cheat bank through this special purpose vehicle

[@Stuployer]

Well, it's the legal way to encourage companies to invest more and generate employment to shed off government burden.

[@user-ie3qx1vo6y]

Should the main company own 50% of the SPV in case of real estate??

[@Stuployer]

You need to have legal opinin.

[@GauravYadav-wb2vi]

Sir
Hindi me bta diye hote

[@Stuployer]

Gaurav, I am thinking to have some videos in Hindi (Urdu), hopefully will have this one soon. I will update you once done.

[@shivanshshukla5883]

Chutiye English seekh Lo nahi toh Naukri Nahi milegi