WILMINGTON, DE — Faced with mounting regulatory demands and operational complexities, general partners (GPs) are adopting new strategies to improve the management of special purpose vehicles (SPVs), according to a recent report from CSC, a leader in global business administration and compliance solutions.
The report, SPV Global Outlook 2025: How GPs are Shaping Strategies for Long-Term Success, surveyed 400 GPs across the Americas, Europe (including the U.K.), and Asia Pacific. It reveals that nearly three-quarters of respondents view rising regulatory burdens as their top concern, highlighting significant reputational and financial risks. Navigating these challenges has emerged as the most pressing issue in setting up and operating SPVs, with particular difficulties stemming from managing structural differences across multiple jurisdictions.
Shifting Toward Innovation in Investment
The report also sheds light on evolving investment preferences. Limited partners (LPs) are driving demand for more direct and customizable investment opportunities, such as co-investment funds, sector-specific vehicles, and evergreen structures. Co-investment strategies in particular are expected to see high demand over the next three years, reflecting a shift in how GPs deploy capital in response to investor appetite for differentiated, long-term value opportunities.
“Traditional funds are still very active, but LP demands are rising and will continue to grow,” said Thijs van Ingen, global head of Corporate Solutions at CSC. “LPs want access to special deals like club structures and separately managed accounts, pushing GPs to innovate with co-investments, evergreen funds, or special joint venture vehicles. While these structures aren’t new, they’re growing in volume and adding significant complexity to reporting and underlying operations.”
Outsourcing and Technology Take Center Stage
To meet these needs while managing operational pressures, GPs are leaning on outsourcing and technology. According to the report, 63% of GPs have already significantly expanded their use of external service providers to enhance efficiency and achieve scalability. Key operational priorities include implementing centralized SPV management portals (63%), improving cash management systems (58%), and adopting enhanced entity management technologies (45%).
“The question for GPs is no longer how to manage change, but how to lead through it,” said Ram Chandrasekar, global head of Fund Solutions at CSC. “What GPs need today is a connected ecosystem that provides a centralized view across their entire corporate portfolio. SPVs, funds, investments—each represents a distinct set of data points, and managers must connect these seamlessly to operate effectively. By investing in operational enhancements and building strategic partnerships, GPs are ensuring smoother SPV management, greater scalability, and stronger resilience.”
Looking Ahead
These findings underscore the increasingly complex environment GPs must operate in as they adapt to rising investor expectations and heightened regulatory scrutiny. With a growing focus on operational innovation through outsourcing and technology, GPs are positioning themselves to remain competitive in a rapidly evolving private equity landscape.
CSC’s report highlights how these shifts are shaping the future of SPV management, pointing to an industry that is not just responding to change but finding ways to proactively lead through it.
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