Imagine having a versatile tool that allows you to navigate complex business landscapes, shield your assets from risks, and unlock new opportunities.
With RAK ICC’s special purpose vehicles (SPVs) you get a vehicle built specifically for that unique purpose.
SPV’s offer an unparalleled level of security by ring-fencing your risks and ensuring liabilities associated with a specific project or transaction are contained within the vehicle itself and cannot be attached to the assets of the SPV’s shareholders or any of it’s sister companies.
This safeguard shields your core business from potential losses, providing you with the peace of mind to navigate uncharted waters confidently.
In our article we share practical examples of how SPV’s have helped protect our clients assets, raise capital and propel their business forward.
Structured finance
A client of Hensley&Cook was looking to expand their operations and invest in cutting edge technology. However their current debt structure hindered their ability to raise capital and pursue growth opportunities.
We presented them with a solution to use RAK ICC’s special purpose vehicle to hold their company’s debts and assets and then issue securities (like bonds) to interest investors. As the bonds were backed by the cash flow generated from their primary business, they were able to raise capital through the securities without putting a burden on their existing debt structure.
Securitisation
Securitisation through a SPV enables a business to consolidate its various financial assets and debts into a single financial instrument.
For those in the e-commerce business with substantial revenue generated through online sales, You can transfer your accounts receivable and outstanding invoices into a SPV and effectively remove these assets from your balance sheet. You can then package your receivables into a pool and issue asset backed securities to interested investors. This provides them with exposure to your consolidated pool of assets and you can quickly convert your accounts receivable into cash.
Asset holding and transfers
SPV’s streamline the asset holding and transfer process in business acquisition.
We assisted a client that was looking to acquire assets from another business to streamline the asset holding and transfer process through a RAK ICC special purpose vehicle.
Through legal agreements created by CRESCO Legal, the target company was able to transfer its assets into the SPV – allowing for a smoother and more efficient process. This clear separation created between the acquiring company and target company by the SPV minimised any legal or operational complexities associated with the transfer of assets.
Once the assets were ring fenced and transfer completed the acquiring company integrated the assets into their existing operations.
Hensley&Cook is a well known niche Corporate Service provider with offices in several global locations. We have assisted a variety of organisations to establish Special Purpose Vehicles and protect their core businesses from risks.
To schedule a consultation with us, send an email to [email protected].
