Cayman Islands Special Purpose Vehicles

The term "special purpose vehicle" is not a term of art . A special purpose vehicle ("SPV") can appear in several forms and guises. The common element in all cases, however, is that an SPV is a company which is inserted in a financial structure to achieve a specific objective. This may not be and, indeed , is unlikely to be related to the jurisdiction in which the SPV is established . Typically the purpose has more to do with the financial structuring of a transaction or the applicable laws or other requirements of other jurisdictions . Vehicles for similar purposes may also be established in trust or partnership form, but corporate entities predominate in practice and are the principal subjects of this memorandum.