SPV vs Fund vs RUV: Choosing the right investment vehicle
How special purpose vehicles, traditional funds, and roll-up vehicles differ – and when to use each.
If you're pooling investor capital, three common structures are a single-deal SPV,a traditional fund, and a roll-up vehicle (RUV). The right choice depends on how many deals you're doing, your investor base, and your timeline.
SPV (Special Purpose Vehicle): These are when investors make one single investment. Investors know exactly which company they're backing, and the company sees a single line on its cap table. These are best for one-off deals.
Fund: This helps pool capital to make more than one investment under a predetermined strategy, usually with a GP or LP structure and a multi-year horizon. These are best for a portfolio thesis.
RUV (roll-up vehicle): These let you consolidate many investors into a single line, often used to bring smaller checks together quickly.
PaperOS supports SPVs (including Series LLC structures), funds, and RUV setup. See the related articles to learn more about each.
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