Definition
SPV Closing Mechanics
The steps to finalize allocations, sign documents, and wire capital to the underlying investment.
SPV closing mechanics describe the operational sequence to finalize a deal: (1) finalize each LP's allocation based on commitments and oversubscription, (2) collect signatures on subscription agreements and operating agreements, (3) confirm KYC/AML status for every LP, (4) call capital and reconcile wires, (5) consolidate funds in the SPV's bank account, and (6) wire the aggregate amount to the underlying portfolio company. Most modern SPV platforms compress these steps into 1-3 business days once all LPs are funded.