SPV Dictionary

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Close

To finalize an SPV, meaning the organizer uses the funds received from investors to purchase an asset. Upon completing the purchase, the SPV executes a purchase agreement and is listed on the relevant company’s or project’s capitalization table. The closing of an SPV triggers several required actions, including countersigning SPV fund documents, generating capital account […]

Close Date

The date on which a closing event occurs, triggered by the earliest of the following, as defined by the Federal Securities and Exchange Commission: (1) the use of investor funds, either through signing investment documents (entering into a contract to invest in a portfolio company) or wiring funds to a portfolio company or other issuer; […]

Closing (Multiple)

The process of new investors and/or additional capital investing in the same portfolio company or asset through the same legal entity during the same round of financing. SPVs will often have multiple closes by raising additional funds after an initial investment is made into the target company or asset.