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March 2, 2009
SPV-funded BEE deals are 'sure to fail'
Special purpose vehicles (SPVs) - financial arrangements often used in black economic empowerment (BEE) deals - are unsustainable and do not work but funders continue to use them because of the fees these structures generate.
Ajay Lalu, a partner at Bravura Economic Empowerment Consulting, said on Friday that SPV models were a failure because they were premised on increasing share prices rather than cash flows.
Posted by StaffWriter at March 2, 2009 7:30 AM