Strategic Special-Purpose Vehicles (SPV), are specialized entity, typically in the form of limited company,partnership firms, trusts or corporations that is created for a specific objective & purpose.
In the past, SPVs were typically used only by financial institutions and Organizations focused on large infrastructure & projects. It allowed a parent company to make highly leveraged or speculative investments via their SPV without endangering the entire company. However, lately it has gained huge traction & adoption for Strategic initiatives that includes Growth, Expansion, Innovation, Digital & Business Transformation
A new way of Strategic investments
An increasingly popular method when it comes to investments is to use an Transformation SPV to help all stakeholders put forth or extend strategic & tactical investments and receive their intended returns.
For Shareholders & Investors
Creating an Transformation SPV allows companies to legally isolate the risks of an investment, and then share its risk with co-investors. Companies can take advantage of this model for many of their Strategic investment initiatives including Innovation and Digital initiatives where lot of experimentation is under way and companies want to mitigate the risk of their investments. Certain types of assets can be hard and tedious to transfer. By creating a SPV that owns an entity’s assets, transferring assets can be done by selling it as a part or whole.
For Executive Management
Being part of an Transformation SPV helps Executive Management brass to manage their transformation Projects in a better manner with risk sharing with larger ecosystem, that can ensure business outcomes better. It gives Management teams a better framework to control their operations & execution for such initiatives in a more focused manner. Assets can be better retired, refreshed or realigned for transformation with an SPV for the flexibility it provides, to create a spin-off or a spin-in based on the business objectives & larger strategy.
Transformation SPV Vehicles with HARAA Labs
HARAA Labs helps create Co-Investments & Strategic Transformation SPV's for chosen Business Objectives to mitigate risks and achieve faster Financial & Business outcomes across various Divisions, Departments, Business Processes, Business Units (SBU's) and Subsidiaries.
Legally, it can be limited partnerships, limited liability companies, trusts or corporations. There are no special requirements to create an SPV in countries like Singapore, Dubai, Qatar or a Delaware Corporation in US that differentiate it from incorporating any other company as it’s merely a vehicle- it all comes down to the intent of the participants about how they wish to use it.
Our clients have typically accelerated the following business Objectives with Transformation SPV's
- Customer Experience
- Revenue Growth
- Operations Performance
- Compliance & Risk
With a strong PMO and Financial Modeling constructs, Transformation SPVs can be a useful method to make your investments and interests in various forms for expansion, growth, R&D, Transformation etc and as well mitigate risks. To evaluate more about our SPV Programs for any of your strategic initiatives, write to us at email@example.com
Transformation SPV's are being formed for Successful execution of
various Digital initiatives