what is the function of spvs in public private partnerships 
public private partnerships are collaborations between a government agency and a privately owned company many private partners in public private partnerships demand a special purpose vehicle as part of the arrangement this is especially true for capital intensive endeavors such as infrastructure projects the private company might not want to take on too much financial exposure so an spv is created to absorb some of the risks the bottom linea special purpose vehicle is a subsidiary created by a parent company for a variety of purposes the spv can be used to isolate financial risk securitize assets and perform separate financial transactions spvs have been used in the past to alter company financials and misrepresent their financial health it s critical to analyze spvs along with other aspects of a company s financial statements before making any investments 