SPV project company is a legal entity specially established for a specific project, usually established by investors, developers, builders or other stakeholders. SPV represents the rights and interests of these stakeholders in the project, manages the activities and resources in the project, and maximizes the efficiency and benefits of the project. SPV usually does not hold the equity or investment of other companies, and its main goal is to minimize the risk of investors in the whole life cycle of a specific project.
SPV companies usually have independent plans, budgets and teams. These teams are usually composed of specialized leaders and managers, who are responsible for supervising all aspects of the project, from project development to final implementation. Once SPV is established, it will get funds from the investment it founded and then use these funds for specific projects. Investors usually do not bear any debts of SPV companies or projects.
SPV company can create benefits for the stakeholders of the project and keep the project in a small scope to reduce the impact on the whole company. SPV can also distribute income, taxes and expenses to all participants, which enables them to better resist market fluctuations and risks. SPV is usually used in real estate projects and energy infrastructure projects. For those investors who seek a safer investment platform, SPV company is an attractive choice, because they can provide higher return on investment and reduce risks.