Akademik

special-purpose vehicle

special purpose vehicle (SPV)

1) A legal entity created for a limited purpose, usually for the acquisition and/or financing of a project.

special purpose vehicle abbr. SPV: A legal entity created for a limited purpose. SPVs are used for a number of purposes including the acquisition and/or financing of a project, or the set up of a securitisation or a structured investment vehicle. They are usually used because they are free from any pre-existing obligations and debts and are separate to the parties that set them up for accountancy, tax and insolvency purposes.