Posted by Wendell Williams ● Apr 26, 2022 1:48:10 AM
5 Benefits of SPV Management Services
A Special Purpose Vehicle (SPV) allows investors to quickly pool capital and invest in a specific startup or exciting new business venture. However, there are many complexities involved in SPV management, and you must ensure that your SPV structure properly aligns with your investment goals.
That’s where SPV management services come in. Below, we explain how SPV management services work and set out five ways they can help deal organizers and investors successfully set up and manage multiple SPVs.
SPV Management Services
SPV service providers offer more than just administrative support. At Assure, we provide a range of critical services for SPV management including:
- SPV setup
- Fund Documents Creation
- Investor Onboarding
- Regulatory support
- Tax preparation
- Deal management
- Performance overview
Investors and managers can choose the SPV solution tier that suits their budget and investment needs, and there’s always flexibility to move between products as goals change.
SPV Management Fee
SPV administration fees vary; however, they’re usually a small percentage of the total investment. The SPV bears the cost of organizational expenses such as entity formation costs like registrations and blue sky fees.
At Assure, we keep SPV management fees as low as possible, starting at a $4,000 flat fee. The fees for SPV administration are usually distributed amongst the investors at closing unless you choose take on those expenses as part of your responsibility as the deal organizer . Most of our organizers do not charge any fee to the investors in the SPV, but take a carry percentage of potential return from the investment. The entity formation process on Glassboard, with supporting fund document templates guide you through structuring the deal and setting it up to take carry. Many organizers end up not paying any out-of-pocket fees or investing their own capital, but still participate in the return on the investment.
We offer a highly competitive pricing structure – contact us to discuss your SPV and learn more about our suite of services.
1. SPV Creation
When you identify an exciting business opportunity, you want to invest quickly with minimum fuss. With SPV management services, you can set up your SPV, invite investors, and process legal documents and paperwork without costly or time-consuming administrative burdens.
SPV management allows you to focus on building relationships and completing deals, rather than filing paperwork. Ready to get started? Simplify SPV formation with an Assure Labs SPV. Fast and streamlined, our SPV gives investors the flexibility they need to close great deals – all for an affordable fee.
2. Risk Management
Every investment opportunity, no matter how promising, carries risk. With the support of an SPV management provider, you can evaluate your objectives and understand your risk exposure.
At Assure, we’ve completed thousands of deals and can help you devise solutions to suit your individual scenario. From entity formation to exit, we help you simplify your capital raising so you can quickly invest in the opportunities you care about while mitigating potential risks.
SPV services help you focus on investing opportunities without losing sight of your overall investment portfolio or risk profile.
3. Regulatory Compliance
One of the major benefits of SPV management services is regulatory support. SPV rules and regulations can be complex, and you need the support of an experienced team to ensure you have the right registrations, filings, documentation and processes in place.
At Assure, we ensure you complete any relevant entity registrations, security filings, Blue Sky filings, and ancillary documentation to onboard investors and legally form your SPV. Our expert compliance team has helped structure over 8,000 venture investment deals and you’ll benefit from their advice throughout your SPV’s life cycle.
SPV management services significantly reduce the likelihood of regulatory non-compliance.
4. Operations Support
SPV management doesn’t stop once the SPV launches. When you choose SPV management services, you’ll benefit from:
- Entity management: Ensuring the SPV stays active and legally valid by making any requisite annual filings and fee payments
- Tax preparation: Preparing and filing 1065’s and K-1’s for investors when required
- Wealth distribution: Distributing any income to investors at the appropriate time
- Financial reporting: Preparing and distributing financial statements when necessary
SPV management services keep your entity running smoothly so you can focus on your investment mission and future goals.
5. Performance Insights
A major challenge in SPV management is tracking investment performance. Our innovative investment technology platform, Glassboard, lets you create deals, track performance, and manage your entities from one single platform.
With Glassboard, you can:
- Set up your Special Purpose Vehicle
- Invite and onboard investors
- File and view paperwork
- Sign Documents
- Track financials and asset performance
- Monitor distributions
- Oversee SPV closing
For investors and deal makers, Glassboard is a user-friendly, transparent, and affordable SPV management tool. SPV management services are designed to support your investment ambitions, and Glassboard makes the process even simpler.
SPV Management Services From Assure
Assure is a leading provider of Venture Capital Fund and SPV management services. With our suite of solutions and services, wealth managers, family offices, investors, and deal organizers can form, launch, and run SPVs with confidence.
From SPV setup to exit, we’re here to support your investment goals. Contact Assure to learn more about SPV management services and start your SPV today!