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🌍 US & Europe · Secondaries & liquiditySpecial purpose vehicle (SPV)
Also called: SPV, special purpose vehicle
In one line
A separate entity set up to pool multiple buyers' money to buy a block of shares, so they hold a stake in the vehicle rather than the shares directly.
In plain English
On many secondary platforms, buyers don't buy your shares one-to-one. Their cash goes into an SPV that buys the block; they own a piece of the SPV. It's how small investors get access and how deals get aggregated.
If you were explaining it to a 5-year-old
Ten kids each put in 1 coin to a shared piggy bank, and the piggy bank buys your 10 toys. Each kid owns a tenth of the piggy bank, not a toy.
Why it matters when you sell
SPV structures shape who your buyer really is, the fees involved and sometimes whether the company will approve the transfer.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.