A Special Purpose Vehicle (SPV) allows investors to quickly pool capital and invest in a specific startup or exciting new business venture. However, there are many complexities involved in SPV management, and you must ensure that your SPV structure properly aligns with your investment goals.
That’s where Venture360’s SPV services come in. Below, we explain how SPV services work and set out five ways they can help deal organizers and investors successfully set up and manage multiple SPVs.
SPV Services
At Venture360, we offer more than just administrative support. We provide a range of critical services for SPVs including:
- SPV setup
- Investor Onboarding with continuous AML monitoring
- Closing support
- Regulatory support
- Tax preparation
- Deal management
- Performance reporting
Investors and managers can choose the back office solution tier that suits their budget and investment needs, and there’s always flexibility to move between products as goals change.
SPV Service Fee We like to keep our SPV administration fees simple. Pay once per SPV, with the fee based on whether the SPV will see activity after the first year. We’ll cover formation (or onboarding of existing SPVs), consolidated portfolio monitoring, annual tax filings, and K-1 distributions. While you pay our SPV fee up front as the manager of the SPV, you’re able to recoup your cost as part of the management fees you’ll charge to investor members.
At Venture360, you are the manager of your SPV, giving you complete control over how you handle your investment vehicles. This includes whether you take a management fee and/or carried interest in the SPV (and if so, how much?).. While many SPV managers recoup their costs with Venture360 to form and administer their SPVs, you may choose to take on those expenses as part of your responsibility as the deal organizer. The entity formation process on your dashboard, with supporting fund document templates guide you through structuring the deal and setting it up to take carry. Many organizers end up not paying any net out-of-pocket fees or investing their own capital, but still participate in the return on the investment.
We offer a highly competitive pricing structure – contact us to discuss your SPV and learn more about our suite of services.
1. SPV Creation
When you identify an exciting business opportunity, you want to invest quickly with minimum fuss. With SPV management services, you can set up your SPV, invite investors, and process legal documents and paperwork without costly or time-consuming administrative burdens. Most Venture360 clients have a fully-formed SPV with subscription documents investors’ hands within one business day.
Outsourcing SPV formation and administration to Venture360 allows you to focus on building relationships and completing deals, rather than filing paperwork. Ready to get started? Simplify SPV formation with Venture360. Fast and streamlined, our SPV gives investors the flexibility they need to close great deals – all for an affordable fee.
2. Risk Management
Every investment opportunity, no matter how promising, carries risk. With the support of an SPV administrator, you can evaluate your objectives and understand your risk exposure.
At Venture360, we’ve completed thousands of deals and can help you devise solutions to suit your individual scenario. From entity formation to exit, we help you simplify your capital raising so you can quickly invest in the opportunities you care about while mitigating potential risks.
SPV services help you focus on investing opportunities without losing sight of your overall investment portfolio or risk profile.
3. Regulatory Compliance
One of the major benefits of SPV management services is regulatory support. SPV rules and regulations can be complex, and you need the support of an experienced team to ensure you have the right registrations, filings, documentation and processes in place.
At Venture360, we ensure you complete any relevant entity registrations, security filings, Blue Sky filings, and ancillary documentation to onboard investors and legally form your SPV. Just like entity formation, we’re here to streamline regulatory filings for you as a part of our administration services..
SPV administration services significantly reduce the likelihood of regulatory non-compliance.
4. Operations Support
SPV administration doesn't stop once the SPV launches. When you choose SPV admin services, you’ll benefit from:
Tax preparation: Preparing and filing 1065’s and K-1’s for investors every year Wealth distribution: Distributing any income to investors at the appropriate time Portfolio Reporting: Investors get real-time access to their account with current updates to portfolio tracking SPV services keep your entity running smoothly so you can focus on your investment mission and future goals.
5. Performance Insights
A major challenge in SPV management is tracking investment performance. Our innovative investment technology platform lets you create deals, track performance, and manage your entities from one single platform.