One of the most popular investment structures in today's alternative investment universe is the co-investment special purpose vehicle. SPVs traditionally are formed for the limited purpose of making one investment to be held for a finite time period. Institutional investors, such as pension funds, endowments, foundations and sovereign wealth funds, are increasingly clamoring for SPVs because they are typically among a manager's "best ideas."
Moreover, SPV offering documents disclose the actual investment name or a detailed description of it, unlike private equity funds or hedge funds. This allows institutional investors to better control their portfolio exposures. There are, however, some important issues to be considered when getting involved with an SPV investment.