The Syndicately blog
Guides on SPVs, fund structures, filings, taxes, and the mechanics of private-market deals, written by the team that runs the vehicles. New here? Start with the SPV guide, which groups every article by topic.
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Preferred Return vs Hurdle Rate: What Is the Difference
Read article: Preferred Return vs Hurdle Rate: What Is the DifferencePreferred return vs hurdle rate usually mean the same thing. Here is where they genuinely differ, how a GP catch-up works, and a worked…
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Roll-up Vehicle vs SPV: What Is the Difference
Read article: Roll-up Vehicle vs SPV: What Is the DifferenceA roll-up vehicle vs an SPV: one consolidates existing cap table holders before a priced round, the other pools new capital for a fresh…
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How Fair Value Works for Private Company Investments
Read article: How Fair Value Works for Private Company InvestmentsA plain guide to fair value for private company investments: the three valuation approaches, why the last financing round anchors the mark, and a…
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What is a 409A Valuation?
Read article: What is a 409A Valuation?If you’re giving equity to employees or anyone else providing services to your company, the IRS wants you to know what that equity is…
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Do SPVs Need an Audit? The SEC Custody Rule Answer
Read article: Do SPVs Need an Audit? The SEC Custody Rule AnswerMost SPVs never get an independent audit. Here is when an SPV audit becomes a requirement under the SEC custody rule, and when a…
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How RIAs Give Clients Access to Private Markets
Read article: How RIAs Give Clients Access to Private MarketsHow registered investment advisers get clients into private deals through feeder SPVs, and what fiduciary duty, disclosure, and the custody rule require along the…
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Carried Interest and the Three-Year Holding Rule
Read article: Carried Interest and the Three-Year Holding RuleSection 1061 requires a partnership to hold an asset more than three years before gain allocated to a carried interest gets long-term capital gains…
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Pay-to-Play Provisions in Venture Financings
Read article: Pay-to-Play Provisions in Venture FinancingsHow a pay-to-play provision forces existing investors to fund a future round or lose their preferred rights, and what an SPV sponsor should plan…
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IRR vs. MOIC: What Each One Actually Measures
Read article: IRR vs. MOIC: What Each One Actually MeasuresIRR measures how fast capital returns; MOIC measures how much came back. A worked example shows why two SPVs with the same MOIC can…
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Understanding Common Carry Percentage
Read article: Understanding Common Carry PercentageSpecial Purpose Vehicle (SPV) carried interest refers to the share of profits that an SPV manager receives as a reward for their role in…