Private markets continue to evolve, and Special Purpose Vehicles (SPVs) have become one of the most important tools for investors seeking access to high-growth private companies. But behind every SPV is a complex legal and operational structure that many investors don’t fully understand.
In this episode, we sit down with Mitch Mechigian, an experienced private markets professional specializing in SPV management and venture investing. Mitch shares what happens behind the scenes of structuring, administering, and managing SPVs throughout their full lifecycle—from formation and investor onboarding to governance, reporting, distributions, and exits.
Whether you’re an angel investor, venture capitalist, founder, family office, or someone looking to better understand private market investing, this episode provides a practical look at how SPVs work, the risks investors should evaluate, and how the rapidly growing secondary market is changing access to private company investments.
In This Episode
- Mitch’s career journey into venture investing and SPV management
- What Special Purpose Vehicles (SPVs) are and why they’re widely used
- Lessons learned from managing SPVs throughout their lifecycle
- Understanding counterparty risk and why it matters
- The difference between direct (first-layer) and indirect (second-layer) SPV investments
- Investor rights, reporting obligations, K-1s, and ongoing communications
- How share classes and liquidation preferences impact secondary pricing
- Navigating Rights of First Refusal (ROFR) in private company transactions
- Typical fee structures in SPVs and who pays them
- The future of venture secondaries and private market liquidity
Key Takeaways
- SPVs provide efficient access to private investment opportunities but require careful structuring and administration.
- Investors should understand not only the underlying company but also the legal and economic structure of the SPV itself.
- Share class rights, governance provisions, and transfer restrictions can materially affect investment outcomes.
- As companies remain private longer, secondary markets and SPVs are becoming increasingly important components of the venture capital ecosystem.
- Understanding information rights, fees, and counterparty risk is essential before investing in any SPV.
About Mitch Mechigian
Mitch Mechigian is a private markets professional with extensive experience in venture investing, SPV administration, and private capital transactions. Throughout his career, he has worked with founders, investors, and fund managers to structure and manage investment vehicles that provide access to private companies while navigating the operational, legal, and reporting complexities of private market investing.
Who Should Listen
- Angel Investors
- Venture Capital Investors
- Family Offices
- Startup Founders
- Investment Bankers
- Private Market Professionals
- Emerging Fund Managers
- Finance Students
- Anyone interested in venture capital and private market investing
Disclaimer: The views expressed in this podcast are for informational purposes only. They do not constitute financial, investment, legal, or tax advice, nor do they necessarily reflect the views of Finalis Inc. or Finalis Securities LLC, Member FINRA/SIPC. Any discussion of private investments, securities, or investment strategies is general in nature and should not be relied upon as a recommendation or solicitation to buy or sell any security. Investors should conduct their own due diligence and consult their professional advisors before making any investment decisions.
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