What are SPVs?

This question can be difficult, at first, even for beginners in the world of investment. Even for those who already know Urbanitae, although the SPV are And is that the name can mislead. An SPV is a type of society… but not understood as the set of people who live in a country under common rules. We are now talking about corporate companies, such as Urbanitae itself.

An SPV is a special purpose vehicle, that is, a company with a special purpose, also called shell companies. They are so called because they have a different purpose from conventional companies , which is, precisely, to constitute a company. In the field of crowdfunding, the SPV are created to channel the money contributed by investors to manage the specific project for which they have contributed it.

I could tell you that, exactly, these companies are allowed by European regulations – Regulation (EU) No 1075/2013 of the European Central Bank – only for securitization operations. But you’d stop reading quickly – I don’t blame you. Surely it is clearer if I tell you that the SPV are the companies that are created for each project that we finance in Urbanitae.

And why? The main reason is to isolate the risk. As you know, each project funded by Urbanitae is independent of the rest. If one project goes wrong, the rest is not affected in the slightest. To achieve this tightness, independent companies are formed managed by the project promoter and created solely and exclusively for the project in question. In this way, the investor always knows exactly where he has invested his money. In addition, the SPV guarantees that investors obtain the same benefits as if they invested directly in the promoter company.