Research reveals SPVs will continue to democratize private asset investing due to their efficient, flexible, and affordable structure
SALT LAKE CITY, June 16, 2022 /PRNewswire/ — Assure Analytics today announced the availability of its inaugural State of the Special Purpose Vehicle (SPV) Report, an aggregation of millions of data points across private markets which are then analyzed to create relevant insights that are unavailable elsewhere in the industry. This unique acumen enables the global financial industry to make more informed, data-based private investment decisions.
Assure Analytics is the business intelligence unit of Assure, the leading provider of SPVs. SPVs have been used to structure investments and private capital for decades. However, historically they have been expensive and inefficient to use. In 2013, Assure changed that by streamlining the process and lowering the costs for creating, administering and closing SPVs, making them more accessible to deal organizers and investors.
“Assure is helping to democratize investing in private assets,” said Jeremy Neilson, CEO and co-founder of Assure. “Traditionally private investing was reserved for a very small niche of uber wealthy investors or venture funds. Now, an entire ecosystem of accredited investors have the opportunity to participate in investing into private assets because the structure of SPVs are extremely flexible, transparent, and affordable. That’s why we’re seeing a two-fold increase in interest every year from investors wanting to deploy this structure using Assure.”
Top findings from the 2022 State of the SPV Report include:
- The median SPV size is $422,000
- 70% of SPVs raise under $1 million
- 6% of SPVs raise more than $5 million
- The median U.S.-led SPV raise was $103,000 with an average of $20,000 per investor
- The median non-U.S.-led SPV was $325,000 with an average of $38,000 per investor
- Over the past six years, the median SPV size has almost doubled while the average investment has more than tripled
- Less than 10% of SPVs collect a management fee
- California organizers are most likely to charge a management fee
- International organizers are least likely to charge a management fee
- SPVs put capital to work and make investor distributions fast. The time to 1st investment is 43 days, and the time to 1st distribution is 2.3 years
The full 2022 State of the SPV Report includes more information on these and other findings. In addition, Assure will continue to release a series of briefs exploring how different segments of the SPV ecosystem leverage SPVs – the first edition takes a look at how angel groups use SPVs and is available for download here.
About Assure
Assure is the pioneering, industry-leading provider of comprehensive structuring and administrative services for the syndicate and venture investment community. The company offers professional, high-quality services and innovative software that streamlines setting up, closing and managing back-office fund administration for angel and private asset investing. Assure’s experience and volume significantly outpaces other fund administrators. Assure’s approach, which allows clients to structure and close deals faster, cheaper and with more transparency, helped pave the way for the ascendance of the “super angels,” special purpose vehicles and micro VCs. The company has worked with more than 1,400 clients, including Launch, Equity Zen, Republic, Forge, Tribeca Angels, Tech Coast Angels, Gaingels, and Miami Angels, structuring and closing more than 8,500 deals with over $9 billion in assets under administration. Assure offers a full suite of services including special purpose vehicle administration, fund accounting and fund taxes, Exempt Reporting Advisor (ERA) services, KYC/AML services and 506(c) accreditation. For more information about Assure, visit www.assure.co.
SOURCE Assure
