Structured investment vehicle meaning

The key documents in a buyout include: a sale and purchase agreement articles of association for the investee company, or its parent, which will function as the buyout vehicle/group, i.e. the entity that will acquire the target group or business an investment agreement a facility agreement together with associated security documents For more detailed guidance, see Practice Note: Buyouts. Sale and purchase agreement The sale and purchase agreement records the transfer of ownership of the target business, whether structured as a share sale or an asset sale...

An investment trust is a collective investment vehicle structured as a quoted UK tax-resident company. Despite the name, it is not a trust in legal terms. Where HMRC approval is obtained, investment trusts benefit from exemption from tax on chargeable gains. For further detail on what investment trusts are, as well as the qualifying conditions and ongoing obligations they must meet, see Practice Note: Tax and investment trusts—what are investment trusts? This Practice Note sets out the specific tax rules for approved investment trusts in relation to: tax on chargeable gains tax on income, in particular the treatment of: distributions received trading versus investment transactions loan relationships and derivative contracts holdings in non-reporting offshore funds management expenses the elective streaming regime under which an approved investment trust may designate a distribution to investors as interest VAT Unless indicated otherwise, references in this Practice Note to an...

This Practice Note outlines collateralised debt obligations (CDOs) and the relevant UK regulatory regime. It addresses: fundamentals such as special purpose vehicles (SPVs), securitisation, tranches, and creating security over a portfolio of financial assets, which may include asset-backed securities (ABS), mortgage-backed securities (MBS) and other issues of CDO securities the key participants in a CDO transaction (arranger, portfolio manager, rating agencies, issuer and investors) the principal CDO structures (cash flow CDO, market value CDO and synthetic CDO) the main portfolio management approaches (dynamic and static) the capital structure of SPVs used for CDO transactions the role of hedging in CDO structures key considerations and legal issues for CDOs (bankruptcy remoteness, methods of transferring the underlying assets to the SPV, jurisdiction and tax issues, credit enhancement and overcollateralisation) What is a CDO? Core concepts Collateralised debt obligations (CDOs) are intricate, high-value arrangements involving many parties, extensive documentation and, commonly, multiple jurisdictions. A CDO transaction involves an orphan shell...