Definition
Subscription Agreement
The contract an LP signs to commit capital to an SPV.
A subscription agreement is the binding legal contract by which a limited partner agrees to invest a specified amount of capital into an SPV. It contains the LP's commitment amount, accredited investor representations, anti-money-laundering certifications, signatures, and acknowledgement of the SPV's operating agreement and private placement memorandum. Subscription agreements are typically completed electronically through the SPV platform and stored in the investor portal alongside KYC documents and the LP's wire instructions.