Legal Definitions - SPV

Term: SPV

Definition: SPV stands for special-purpose vehicle, which is also known as a special-purpose entity. It is a type of company that is created for a specific purpose, such as to hold assets or manage a project. Think of it like a tool that is used for a specific job. Once the job is done, the tool may no longer be needed. Similarly, once the purpose of the SPV is fulfilled, it may be dissolved or sold off.