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B. G., Opalesque Geneva:

Within the alternative investments industry, the demand by investors for customized investment opportunities has continued, and is only growing, according to Kevin Neubauer, a partner in the Investment Management Group of Seward & Kissel. "We expect the formation of customized vehicles to increase given the continued demand for customized solutions by investors and the fundraising headwinds for managers."

U.S. law firm Seward and Kissel has just published their inaugural SPV Snapshot Report, which offers detailed metrics on the investment focus, structure, and economics of SPVs. Over 90% of investments made by SPVs in the Report were private in nature. Investments in public investment SPVs were either activist-type positions or high-conviction overflow co-investment positions.

"We have seen some of the demand for SPVs coming from large asset managers that have historically focused on public investments but now want to participate in late-stage private companies, pre-IPO companies, or simply are looking to diversify their businesses and offer their clients a broader range of opportunities," added Steve Nadel, a partner in the Investment Management Group.

Most of the SPVs in the report focus on a single investment opportunity and were in the form of equity. Furthermore, just over half of private investment SPVs charge a management fee, as do three-quarter......................

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