SPV (Special Purpose Vehicle)

Definition

An SPV (Special Purpose Vehicle) is a legal entity created for a specific purpose, often to isolate the financial risks of a project or to facilitate the management of fractionalized and tokenized assets. It is widely used in traditional finance and DeFi, particularly to structure investment funds or issue security tokens. By ring-fencing its activities and assets from the other entities of the group it belongs to, an SPV protects investors against potential financial defaults.

SPV, SCI, SAS: which structure to choose for a club deal?

For a real estate club deal, the choice of legal structure is decisive. Three forms are commonly used:

• SPV / SAS (Société par Actions Simplifiée): Simplified Joint-Stock Company, ideal for short-term operations such as purchase-resale. High statutory flexibility, easy entry and exit of investors.
• SCI (Société Civile Immobilière): Suited to long-term holding and rental operations. Transparent taxation (corporate or personal income tax depending on options). Commonly used for residential or commercial rental assets.
• Dedicated holdings: For complex operations requiring multi-tier structuring or distribution to several classes of investors.

Digitalizing SPV management

Managing an SPV in a club deal involves: issuing and tracking securities (shares or bonds), KYC onboarding of investors, collecting subscriptions, and distributing returns. Without dedicated infrastructure, these operations are managed on Excel with risks of errors and significant delays. A solution like Fraktion digitalizes the full cycle, from setting up the vehicle to automatic distribution of returns.

Structuring a club deal or fundraise through an SPV?

Fraktion automates the entire lifecycle of your SPV, from setting up the vehicle to distributing returns. A single infrastructure to structure, distribute and manage your SPVs — no Excel, no development, operational in 4 weeks.

• Investor KYC onboarding automated in less than 48 hours
• Share registry and cap table generated in real time
• Distribution of dividends or rents managed from your back-office

Talk to a Fraktion expert → or explore our club deal management software.

See also:
→ Real Estate Club Deal — stages and structuring
→ Real Estate Fundraising
→ Our solution for club deal operators