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On November 23, 2022, Dan Primack broke the news that Assure, a widely-known SPV platform, was shutting down. Seemingly overnight, the industry was set aflame with the injustice of Assure’s approach and short sightedness in winding down just before year-end, leaving managers responsible for transitioning bank accounts and year-end reporting. 

According to SEC data aggregator 9AT, Assure administered roughly $9B in client assets and references over 50k clients served across 8k SPVs on their website. Today, the same site references the “Assure Transition” via a web banner, informing clients that Assure is winding down and that fund and SPV ownership will be transitioned back to their clients. 

What are bundled SPVs?

Assure was one of the first platforms to “bundle” SPVs as a standalone product and drive the price of SPVs down to as low as $10k. This model has become a popular and simple way to spin up SPVs and all of the associated services (bank account setup, admin, tax filings, entity registration, KYC, etc) on one platform.

However, bundled SPVs come with their own risks. As evidenced by Assure, selecting a bundled platform creates a single point of failure for all of your service provider needs and can create devastating frustration for your team and end-investors.  

The Solution: Unbundled SPVs

Unbundled SPVs provide your investors with one login and a familiar place to transact or view their holdings. This “investor layer” can be co-branded and include deal rooms, e-sub docs, and portals to serve each stage of the investor lifecycle. 

On the back-end, service providers can be plugged in via shared dashboards to facilitate straight-through processing and cut down on manual reviews. This model is made possible by Nova’s multi-party infrastructure, where different dashboards and data streams can be provisioned to each service provider you work with.

With unbundled SPVs, managers own their own data, orchestrate operations and compliance from a single dashboard, and divorce themselves and their investors from their service providers' legacy tech. SPV managers that use Nova today appreciate the flexibility in service provider options, and a-la-carte approach that is closely aligned with their operating model and doesn’t force a “one size fits all” in terms of services. Don’t love your fund admin’s KYC process? Replace that process with one of Nova’s trusted partners. Need to transition to a new tax firm? Reprovision dashboards and share SPV data and holdings in real time. Throughout all of this, the investor login and experience remains the same. 

Architecture of an Unbundled SPV

Nova’s Unbundled SPVs serve each part of the SPV lifecycle: fundraising, close, and reporting. With Nova, investors benefit from saved accounts, integrated KYC and accreditation checks, and limited email back-and-forth thanks to shared dashboards with fund administrators and other service providers. 

A typical implementation includes data rooms for investors to browse open opportunities, subscription and NDA workflows for each of the deals, and investor portals to distribute K-1s and relevant information. On the back-end, managers are equipped with transaction dashboards to track the status and review of each investor across their service providers, pull custom reporting, and manage investor engagement. 

Talk to an SPV Solutions Architect

Given recent events, we’re expanding our private beta to help educate managers and service providers on alternative SPV models, and best practices in effectively managing single points of failure in fund operations. 

If you’re interested in a product tour or would like to learn more about managers like IceCap are raising 40% with streamlined investor onboarding, please don’t hesitate tor reach out to our team at hello@novahq.com.