special purpose vehicle

“The vast majority of the volume goes through these sort of questionable SPDs”

“I've seen personally in cases where the stocks that are in the entity are sold by the individual managing the entity. And they don't need to seek approval from the people who invest in it, right?”

“You just have to look at the underlying pieces and understand them, except that there's the additional complexity. How did they get this thing? Is it through an SPV? Is it through an L two SPV? What did they pay for that? How much of the sort of return is goin…”

“The other thing, of course, is that people layer in a lot of fees, carry, so it's not unusual to see one in 10, two in 20 type structures, or a five percent transaction fee, and often it's not done at the last round. It's done a significant, you know, increase…”

“So you see things L one, L two, you even see L three nested structures each time you're further and further away from the stock. And so there's more and more risks that you don't get, You know, what you thought you would, right? Because who's to say that the o…”

“And in some spaces, like in private equity, carry usually has a minimum return before the carry accrues to the person. So, you know, might have a six, seven, eight percent Return to the investor before the SPV owner gets the carry, but in these situations I've…”