PCA (Post Close Activity)
A post-closing activity (PCA) is any event that requires active administration of the SPV by the investment portfolio, the Organizer, or the investors in the fund. There are two categories of SPVs PCA, administration of the SPV and the SPV acting in its role as an investor in an asset. Types of administration of the […]
PE (Private Equity)
Private equity is equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be […]
Plan Asset Rule
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 […]
Portfolio
A grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents. A portfolio may consist of non-public securities, like start up companies, real estate, art, and secondaries. Investing into private assets through a number of SPVs would result in a portfolio of private assets.
Portfolio Company (Investment Portfolio)
A start up company, company or entity in which an SPV invests into.
Private Transaction
A purchase or sale of assets that are not publicly listed. SPVs are used to aggregate capital to participate in a private transaction.
Pro Rata (Proportionate Allocation, Pro Rata Dividends Share, Pro Rata Investment Opportunity)
Pro rata is the term used to describe a proportionate allocation. It is a method of assigning an amount to a fraction according to its share of the whole. Pro rata in business financing may be used to identify the amount of shareholders dividend according to its share in the company. For SPVs, pro rata […]
Public Transaction
A purchase or sale of assets in which there will typically be no identifiable party to stand behind the obligations of the transaction after closing. In a public company transaction, the target company is subject to ongoing disclosure requirements by the Securities and Exchange Commission. This means that there is a significant amount of information […]
Purchase Agreement (PA)
A sales and purchase agreement (PA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. An PA serves as a basis for a transaction to take place, providing a framework of how the transaction will proceed, what is included in the transaction, and, if necessary, […]
Purchase Amount
Amount paid for an asset. The final amount sent from the SPV to the company or sponsor in exchange for the asset. The purchase amount should be stated in the purchase agreement.