Special Purpose Entity / Vehicle Formation

We're here to help you organize your structured finance deal, including formation of a special purpose entity.

Benefits / How We Help

  • Accurate, cost-effective filings throughout the life of your deal
  • Ability to legally operate under all assumed and trade names
  • Worry-free process – no missed filing deadlines
  • Reassurance that your business is in good standing

We'll help you with all your special purpose entity / vehicle formation needs

  • Providing you with a contact  that is with you every step of the way
  • Deploying a dedicated team – your deal is their first priority
  • Establishing a solid foundation for your transaction
  • Incorporating your special purpose entity or vehicle
  • Proactively managing all your filing obligations and notifications to state authorities

CT Expert Insights: The Importance of a Special Purpose Entity / Vehicle for Your Structured Finance Deal

A special purpose entity (SPE) or vehicle (SPV) is a unique entity or means of holding on to an asset in a place separate from the rest of your business. While they are common in real estate, many businesses find them advantageous to use in any kind of large lending situation. Ian Bone, Senior Manager of Strategy and Innovation at CT Corporation, discusses what SPVs and SPEs are, when to use them, and the benefits and risks associated with them. 

FAQs

What is a special purpose entity?

A special purpose entity or SPE, sometimes called a 'special purpose vehicle' or SPV, is a legal entity created to fill a very specific or temporary business objective. They can be LPs, LLCs, subsidiaries, or trusts. Their operations are limited to the acquisition and financing of specific assets.

Why is it important to create a special purpose entity in order to complete a deal?

Special purpose entities can help to protect your firm from financial risk. You can transfer assets to a special purpose entity for a deal or use the entity to finance a large project. Conversely, the obligations of a special purpose entity are secure even if the parent company declares bankruptcy.

Request a Custom Quote

Have a specific question about a product? A CT Specialist will follow up with a custom quote along with a comprehensive assessment of your needs.