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
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.
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.
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.
LP portal & communication
Must-haves: Invite flow, allocation view, docs, statements, and update broadcasts.
Why it matters: LP UX drives conversion and repeat participation.
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
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.
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.
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.
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
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.
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.
Data portability
Must-haves: Self-serve exports, API, clean schema docs, no data lock-in.
Why it matters: Portability de-risks vendor selection.
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.
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.
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.
Allocations gets you from idea to funded SPV in days — not weeks.
Author
Addhyan Negi
Director of Marketing, Allocations
Addhyan leads marketing at Allocations, a fintech platform for SPVs and fund administration, where he's spent the last few years building organic growth and content strategy across private markets. He writes about pre-IPO investing, fund structures, and the mechanics of how private companies actually get bought and sold. Outside of work, he's usually deep in the latest frontier AI models or listening to Punjabi music.
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