Private Equity

A securitisation SPV can acquire risks linked to private equity or companies or ventures which have participations or business activities into specific industry or sectors.

The SPV issues a security to investors and the proceeds of the issuance of such securities is then invested in the deal or the target company.

The SPV will receive either dividends or realise a capital gain upon disposal of the company. Such income would then be collected by the SPV and the investor will be paid a return on their securities which is secured by the yield generated by the participation acquired by the SPV.

Such SPV may also be used to create a fraction of larger investment to be issued to a wide range of investors, either to get access to larger deals or to create a portfolio of (smaller) ones.

An SPV may sometimes issue notes or certificates representing the shares/units of investment fund in private equity.