An entity, such as an SPV that is not itself a plan subject to ERISA, is treated as holding assets of the investing employee benefit plans if it appears that its primary purpose is to invest retirement plan assets. This is known as the “look-through rule.” The determination of whether an entity is treated as holding ERISA plan assets is made based on regulations. The Plan Asset Rules provide additional exceptions to the look-through rule, including three well-known exceptions.
- The entity is a Venture Capital Operating Company (VCOC)
- The entity is a Real Estate Operating Company (REOC)
- Less than 25% of the value of any class of equity interests in the entity is held by benefit plan investors