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Special Purpose Vehicle |
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Description of Special Purpose Vehicle. Explanation. |
Definition Special Purpose Vehicle. Description.
A Special Purpose Vehicle (SPV) is a company with a limited
purpose or focus. It is created by a corporation to conduct a specific or
temporary activity. It is normally, but not necessarily, owned almost entirely
by the sponsoring corporation. It must be distanced from the sponsor both
in terms of management and ownership (not 100%), because if the SPV were to
be owned or controlled by the sponsor, there is no difference between a subsidiary
and an SPV. Some common uses of such SPVs are (depending on the jurisdiction):
Many SPVs are incorporated in countries such as the Cayman Islands, The Channel Islands, Luxembourg, etc.
Also called Special Purpose Entity.
Compare with: Tax Haven | Joint-Venture | Start-up Company | Ring Fencing | Acquisition Integration Approaches | Strategic Alliance | Spin-Off | Divestiture |
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End of description Special Purpose Vehicle. An explanation. |
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