Legal Definitions - SPE

Term: SPE

Definition: SPE stands for SPECIAL-PURPOSE ENTITY.

Examples:

• A company creates an SPE to hold a specific asset, such as a building or a piece of equipment, to protect it from the company's creditors.
• A group of investors creates an SPE to pool their money and invest in a specific project, such as a real estatedevelopment or a renewable energy project.

The examples illustrate how an SPE is a separate legal entity created for a specific purpose. It is often used to isolate assets or liabilities from the rest of a company or group of investors. This can provide protection from creditors or allow for more efficient management of a specific project or asset.