Special Purpose Vehicle (SPV) - 0 views
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Shuraa Business Setup on 29 May 24A special purpose vehicle is a subsidiary established by a parent company to segregate financial risk. It is also known as a special purpose entity (SPE) or bankruptcy-remote entity as its obligations remain secured even if the parent company goes bankrupt. The main purpose of creating such an entity is to carry out a risky venture while minimizing any negative financial impact on the parent company or its investors. In short, it is a holding company formed for the securement of debt.