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A special-purpose entity (SPE; or, in Europe and India, special-purpose vehicle/SPV; or, in some cases in each EU jurisdiction, FVC, financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives.
Orphan structure or Orphan SPV or orphaning are terms used in structured finance closely associated with creating SPVs ("Special Purpose Vehicles") for securitisation transactions where the notional equity of the SPV is deliberately handed over to an unconnected 3rd party who themselves have no control over the SPV; thus the SPV becomes an "orphan" whose equity is controlled by no one.
A special-purpose acquisition company (SPAC; / s p æ k /), also known as a "blank check company", is a shell corporation listed on a stock exchange with the purpose of acquiring (or merging with) a private company, thus making the private company public without going through the initial public offering process, which often carries significant procedural and regulatory burdens.
Private equity also isn’t cheap, as fees can eat into investment gains. Many private equity firms charge investors fees that amount to 2% of assets and 20% of any profits.
A higher credit rating could allow the special-purpose vehicle and, by extension, the originating institution to pay a lower interest rate (and hence, charge a higher price) on the asset-backed securities than if the originating institution borrowed funds or issued bonds.
Publicly traded private equity (also referred to as publicly quoted private equity or publicly listed private equity) refers to an investment firm or investment vehicle, which makes investments conforming to one of the various private equity strategies, and is listed on a public stock exchange.
From January 2008 to December 2012, if you bought shares in companies when Irvine O. Hockaday, Jr. joined the board, and sold them when he left, you would have a 92.0 percent return on your investment, compared to a -2.8 percent return from the S&P 500.
From September 2010 to December 2012, if you bought shares in companies when Mark V. Hurd joined the board, and sold them when he left, you would have a 47.3 percent return on your investment, compared to a 32.0 percent return from the S&P 500.