Launching a private equity fund from the ground up is an intricate, time-consuming, and often overwhelming process. Between legal setup, building relationships with limited partners (LPs), raising capital, compliance, you name it, it can take months—even years—to get to your first deal.
The good news is that there's an easier, faster, and more flexible alternative to a full fund in private market investing—special purpose vehicles (SPVs).
In this guide, you'll get a practical introduction to SPVs—what they are, why they're gaining traction, and how emerging managers can get started using them. While SPVs help you stay nimble and move quickly, they do come with their own set of complexities. So, we'll walk you through the proper structure and technology you need to avoid slow, error-prone, and resource-draining activities, particularly for smaller firms that don't have a CFO or in-house finance teams to support.