Special purpose vehicles crash too often, cautions Bravura consultant

March 27, 2009

A veteran black economic empowerment (BEE) expert recently lashed out at banks that were still using special purpose vehicles (SPVs) to finance BEE deals.

Ajay Lalu, a partner at Bravura Economic Empowerment Consulting, said SPVs were unsustainable. They were a failure because they were premised on increasing share prices rather than cash flows.

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