SPV is an acronym that stands for Special Purpose Vehicle. SPVs are commonly used in finance as a legal entity created for a specific investment purpose. Synonyms for SPV include Special Purpose Entity (SPE), Single Purpose Vehicle (SPC), or simply Purpose Trusts (PTs). SPVs are frequently used in transactions such as securitization, infrastructure development, and project financing. In essence, an SPV is a legal structure established to isolate a specific investment from the parent company's balance sheet. This allows investors to participate in the investment while limiting their exposure to other risks associated with the parent company. Overall, SPVs are critical structures in finance that help facilitate complex investments and transactions.