Side Letters in SPVs: What to Know
Side letters are agreements made with specific investors to grant unique terms in an SPV. These might include fee reductions, information rights, or customized governance provisions.
Managing side letters manually can be risky, which is why sponsors turn to Allocations. The Allocations SPV platform allows side letter terms to be clearly documented and integrated into overall SPV fund administration.
For sponsors, this ensures transparency and reduces disputes. For investors, it builds confidence that commitments are honored consistently. Allocations also helps sponsors balance side letter terms with compliance under Form D and Blue Sky laws.
For sponsors, this ensures transparency and reduces disputes. For investors, it builds confidence that commitments are honored consistently. Allocations also helps sponsors balance side letter terms with compliance under Form D and Blue Sky laws.
By digitizing the process, Allocations makes handling side letters more efficient and secure.
Learn more about managing side letters with Allocations at allocations.com