Deal
A term used to describe a specific investment opportunity in an asset, such as a portfolio company’s share offering or a real estate project. “Doing a deal” typically involves various steps, including due diligence, fundraising, and the formation of an SPV. Deals often utilize an SPV to pool investor capital in order to meet allocation […]
Debt (Liability, Financial Obligation)
An amount of money borrowed by one party from another, with the agreement to repay it at a later date, typically with interest. A convertible note is an example of a debt instrument. SPVs often invest in convertible notes or other debt instruments as the assets they acquire.
Delaware (State of Delaware)
Delaware is the most commonly selected jurisdiction for the formation of Special Purpose Vehicles (SPVs), primarily due to its well-established legal framework, particularly the Delaware Limited Liability Company Act (Delaware Act). The Delaware Act is widely regarded as the statute of choice for sophisticated ventures organized as LLCs, especially for deals involving parties from multiple […]