Friday, July 19, 2019

What Are Special Purpose Vehicles?

Man reading a business newspaper  Image:
Man reading a business newspaper
The CEO of Laidlaw & Company (UK), Ltd., Matt Eitner has been leading the boutique investment bank since 2011. Working in the finance sector for more than 10 years, Matt Eitner has developed a professional interest in such things as special purpose vehicles (SPVs).

A legal entity, an SPV is a company subsidiary created with the purpose of completing a business activity while protecting the parent company from risk. Since SPVs are created with certain purposes in mind, their operations are often limited to financing or buying specific assets. 

However, SPVs are wholly separate from their parent company and continue operating even if the parent company goes bankrupt. Further, assets held by SPVs are not viewed as assets of the parent company, which protects them from financial issues. SPVs may also gather their own investors since they are their own legal entity.

Monday, January 28, 2019

What Are Alternative Investments?

Experienced investment banker Matt Eitner serves as chief executive officer of Laidlaw & Company Ltd. Tasked with managing clients’ wealth, Matt Eitner provides comprehensive investment options including alternative investments. 

Alternative investments are investments in assets outside the traditional stocks, bonds, and cash mix. This class of investments provides an alternative path to allocating wealth for the purposes of growing it over time or earning returns from it. 

Real estate and its derivations, stocks in private companies, hedge funds, venture capital, and commodities such as oil and gold have become widely accepted alternative investments. Other types of alternative assets include tax lien certificates, intellectual property, art and other collectibles, mineral rights, and equipment leasing. 

There are several reasons why investors may allocate capital to alternative investments. For one, these investments typically have a low correlation to traditional investments such as stocks and bonds. Therefore, they are a good option for diversification. Other reasons include tax advantages and higher potential for earning returns.