Selecting an SPV platform isn’t just about sticker price. It’s about time-to-close, compliance comfort, LP experience, and repeatability across many deals. Use this checklist to run a structured evaluation—and see how Allocations aligns.

A. Core formation & deal workflow

1. Entity formation & templates

   • Must-haves: Common entity types (e.g., DE LLC), standardized docs, digital subscriptions, e-sign.

   • Why it matters: Formation/doc automation is the root of speed and error-reduction.
     
     

2. KYC/AML & investor verification

   • Must-haves: Integrated checks, audit trails, support for individuals & entities, risk-based reviews.

   • Why it matters: Keeps compliance inside the workflow; reduces back-and-forth.
     
     

3. Banking rails & reconciliation

   • Must-haves: Clear wiring/ACH/FX, deal-level reconciliation, status tracking, refunds handling.

   • Why it matters: Funding friction is the #1 close-delay.
     
     

4. LP portal & communication

   • Must-haves: Invite flow, allocation view, docs, statements, and update broadcasts.

   • Why it matters: LP UX drives conversion and repeat participation.
     
     

5. Terms configuration (fees/carry/waterfalls)

   • Must-haves: Flexible carry, admin fees, expense tracking; side-letter support.

   • Why it matters: Economics must be configurable yet consistent across deals.

B. Scale, reporting, and taxes

6. Cloning & contact re-use

   • Must-haves: Clone prior SPVs, pre-fill terms, re-invite prior LP cohorts.

   • Why it matters: Reduces setup time from days to hours on repeat deals.
     
     

7. Reporting & exports

   • Must-haves: Cap tables, transaction logs, audit trails, CSV/Excel/PDF exports, API access.

   • Why it matters: You’ll port data into CRMs, analytics, and audit packs.
     
     

8. Tax workflows

   • Must-haves: Year-end packages, investor statements, US K-1 support (where applicable), coordinator roles.

   • Why it matters: Taxes determine the true operational cost per SPV.
     
     

9. International readiness

   • Must-haves: Multi-currency, FX notes, residency/tax status capture, FATCA/CRS data fields.

   • Why it matters: Cross-border LPs are common—even in small SPVs.

C. Security, compliance, and controls

10. Security posture

• Must-haves: Role-based access, SSO/2FA, encryption in transit/at rest, least-privilege design, detailed audit logs.

• Why it matters: You’re handling PII, banking, and sensitive deal data.

11. Regulatory confidence

• Must-haves: Clear operational policies, data retention, jurisdictional support, support for US Reg D workflows and equivalents.

• Why it matters: Minimizes legal friction for both organizer and LPs.

12. Data portability

• Must-haves: Self-serve exports, API, clean schema docs, no data lock-in.

• Why it matters: Portability de-risks vendor selection.

13. Branding & white-label

• Must-haves: Custom domains/logos/emails, content blocks (FAQs, risk factors), and language localization.

• Why it matters: Helps you look professional and on-brand to LPs.

14. Support & SLAs

• Must-haves: Named support during closings, response time commitments, help center content.

• Why it matters: Most fires happen on Fridays before wire cut-off.

15. Pricing transparency & TCO

• Must-haves: Clear one-time vs. recurring fees, per-LP or per-wire charges, tax/filing pass-throughs.

• Why it matters: Hidden costs blow up your economics and LP NPS.

Scoring rubric (practical way to compare vendors)

Create a 100-point rubric and weight to your priorities:

• Formation & docs (10)

• KYC/AML (10)

• Banking & reconciliation (10)

• LP portal & comms (10)

• Terms config (5)

• Cloning & scale (10)

• Reporting & exports (5)

• Tax workflows (10)

• International readiness (5)

• Security & compliance (10)

• Data portability (5)

• Branding/white-label (3)

• Support & SLAs (5)

• Pricing transparency/TCO (2)

Give each vendor a score by section; select the one with the highest weighted score plus the strongest references.

TCO: Example cost model (what to include)

• Platform fee (setup/admin)

• Per-LP charges (if any)

• State/country filings and registered agent

• Banking/wire/FX fees

• Tax prep & delivery

• Internal time saved (hours × internal rate)

• Error reduction (rework avoided; late-KYC risk costs)

Pro tip: Put time saved and error avoidance into dollars. That’s your real comparison.

RFP questions you can paste into email

• Which entity types/jurisdictions do you support out-of-the-box?

• Describe your KYC/AML process for individuals, entities, and cross-border LPs.

• Detail banking options (ACH/wire/FX), cut-off times, and reconciliation views.

• Show LP portal screens (invite, allocation, docs, statements).

• How do we configure carry, admin fees, side letters, and waterfalls?

• What year-end tax deliverables are supported?

• Do you provide APIs, data dictionaries, and bulk export options?

• What security certifications and audit logs are available?

• SLA terms during closings? Named support contacts.

• Full fee schedule including pass-through costs?

Red flags (pause if you see these)

• Email-only “workflows,” scattered PDFs, and manual trackers

• No integrated KYC/AML or incomplete audit trails

• Weak reconciliation; no per-deal funding view

• Rigid fee/carry settings or no side-letter support

• Limited tax tooling; slow, ad-hoc deliverables

• No API/exports; data held hostage

How Allocations maps to this checklist

• Formation & digital subs: Streamlined templates and e-sign flows

• KYC/AML: Integrated investor verification with auditability

• Banking & reconciliation: Deal-level instructions and status tracking

• LP portal: Clean investor experience from invite → statements

• Terms & scale: Configurable economics; cloning for repeat SPVs

• Reporting & tax: Standardized exports and year-end workflows

• Security & portability: Role-based access, logging, and data exports

• Branding & support: White-label elements and hands-on guidance at close

Put this checklist to work. Run your next SPV on Allocations and measure time-to-close, LP conversion, and admin hours saved.

FAQs

How do I pilot an SPV platform without switching everything?
Run one new SPV on the platform while maintaining your current process elsewhere. Compare hours spent, conversion, and error rates.

Can I migrate an in-flight SPV?
Sometimes, depends on the stage and document set. Most organizers start fresh on the next deal.

Do I need white-label/branding from day one?
If LPs come via your brand, yes—it helps trust and conversion. If most LPs come via a lead’s community, it’s a nice-to-have.

What about cross-border LPs and FX?
Confirm supported corridors and how FX and tax status are captured (FATCA/CRS fields).

What’s the biggest hidden cost in SPVs?
Year-end tax and reconciliation time. Ensure the platform standardizes both.