An investment vehicle refers to a product or structure used by investors to gain exposure to a range of assets and potentially earn returns. This term is often applied to legal structures that aggregate various investments, like SPVs or venture capital funds.
Each vehicle is usually managed by a Lead investor or fund manager responsible for making investment decisions on behalf of the (co-)investors / LPs. The specific regulations, strategies, and objectives of each investment vehicle can differ significantly, depending on its specific mandate.
It's essential to consider the different regulatory and tax implications each investment vehicle carries. Understanding these aspects before investing is crucial. Additionally, attention must be paid to the fees and costs associated with each vehicle.
