This oft overlooked step represents “good housekeeping.” It enables SPV organizers and their teams to take the time to double-check the documents and transactions from preceding steps, and make sure that they have fully executed all of them. In other cases, information may have changed since the time the documents were created and submitted or the transactions were performed. This step of managing an SPV requires Administration expertise.
This is a step in which many things have a tendency to fall into entropy if left unattended, creating negative unintended consequences for the SPV and it's participating investors. It is unwise to assume everything is in order without carefully retracing our steps, confirming the accuracy of our documents and making sure nothing material has transpired that will warrant changes in our reporting.
For example, in many instances the organizers of a capital-raising SPV will wire funds and sign documents in the process of finalizing a private asset investment before the company in which they invested has completed its fundraising process. Then the SPV organizers will deliver countersigned documents and final drafts to the investors in their group. If the organizers don’t double-check and make sure everything is in order, the SPV can go for years before its organizers realize that their investors never received a fully executed document package. Certainly, none of these investors want to be asking for documents three years after their investment! Nor do they want to receive incorrect information when the facts have changed.
As the industry leader in managing venture investment vehicles, Assure has worked on more deals than anyone else in the marketplace. This has enabled us to anticipate problems that might crop up, and in turn to develop systems for ensuring that the entity’s reporting and documentation reflects current and historical realities.
After we have gone back through the previous steps to confirm that everything is in proper order and that nothing material has changed, we are ready to move forward to the next stage of our capital-raising SPV: PREPARE AND FILE TAXES AND DELIVER K1 FORMS TO YOUR INVESTORS