Understanding SPVs and Securitisation: How Family Offices Can Optimise Asset Management

Introduction

Family offices managing diverse asset portfolios increasingly struggle with three core challenges: creating customised investment solutions, maintaining sufficient liquidity and accessing specialised markets. Securitisation offers a compelling alternative to traditional fund structures, particularly through tracker certificates and Actively Managed Certificates (AMCs).

SPVs and securitisation, when strategically combined, create powerful instruments that allow family offices to precisely tailor investment exposures, maintain granular control over asset flows and dramatically simplify reporting requirements across multiple jurisdictions.

In this paper, we examine the practical applications of securitisation platforms integrated with global SPV structures, demonstrating how this approach supports sophisticated asset management strategies uniquely suited to family office needs and objectives.

The Role of SPVs in Family Office Structuring

An SPV is a dedicated legal entity created to isolate assets, manage investment risk, or facilitate transactions. For family offices, SPVs can:

• Ring-fence legal and operational risks
• Separate strategies by structure, jurisdiction, or tax treatment
• Enable cross-border investing with transparency and efficiency

SPVs used in conjunction with Swiss certificates are often domiciled in tax-neutral jurisdictions like the Cayman Islands, Guernsey, Jersey, or Luxembourg, depending on investor familiarity, legal preferences and cost.

Securitisation in Switzerland: Tracker Certificates and AMCs

Switzerland is a leading jurisdiction for securitisation of investment strategies via structured products. Two commonly used instruments include:

Tracker Certificates

These are structured notes that replicate the performance of a defined basket of assets. They provide:

• Transparent exposure to private equity, real estate, or venture strategies
• Standard securities form (with ISINs), compatible with bank custody systems
• Flexible access for qualified investors across jurisdictions

Actively Managed Certificates (AMCs)

AMCs allow an appointed strategy manager to dynamically rebalance a portfolio within a predefined mandate. Issued by Swiss banks or platforms, they:

• Enable exposure to complex or non-bankable assets (e.g. direct lending)
• Provide faster, lower-cost setup versus traditional funds
• Are treated as debt securities under Swiss law

AMCs and tracker certificates are ideal for family offices seeking professional-grade structuring without the friction of fund formation.

How SPVs Integrate with Swiss Structures

Although the certificates are issued in Switzerland, the underlying assets or strategies are often held by an SPV, which may:

• Own private equity stakes, real estate, or loans
• Be party to swap agreements replicating exposure
• Facilitate reporting and control for specific investor groups

SPVs act as the legal interface between the structured note and the underlying economic interest. Their domiciliation in places like Cayman or Guernsey ensures global investor recognition, tax neutrality and efficient administration.

Importance of a Bankruptcy-Remote SPV

When structuring investments via securitised products, ensuring that the SPV is bankruptcy-remote is vital. A bankruptcy-remote SPV is legally structured so that its financial health is isolated from the solvency of the sponsor or parent company. This means that even if the asset manager or affiliated parties face financial distress, the assets held within the SPV remain protected and unaffected.

For family offices, this adds a significant layer of security. It ensures that:

• Creditors of the sponsor cannot claim assets in the SPV
• The structured product retains its economic integrity and investor confidence
• The vehicle’s operation is governed strictly by its transaction documents and not exposed to outside liabilities

Bankruptcy remoteness is achieved through precise structural elements: independent directors, well-crafted non-petition covenants and clear legal segregation of assets. These aren’t optional features but rather standard requirements embedded in properly structured AMCs and tracker certificates. Such protections significantly strengthen the confidence that investors, especially family offices, place in these securitised products.

Advantages for Family Offices

1. Strategic Flexibility

Combining an SPV with a tracker or AMC allows the family office to define a precise investment thesis, (be it long-term capital growth, thematic investing, or tactical exposures) and package it into a clean, regulated security.

2. Operational Efficiency

Securitisation platforms handle settlement, NAV calculation and ISIN registration. The family office avoids the operational load of fund administration while retaining full control over the underlying strategy.

3. Liquidity and Reporting

AMCs and trackers can be listed, giving visibility and potential liquidity. They integrate with standard custody systems, simplifying portfolio monitoring and reporting for multi-asset, multi-jurisdiction setups.

4. Confidentiality and Control

Using an SPV keeps asset ownership and management discreet, while providing auditability and control, a key balance for family offices valuing privacy and governance.

Use Cases

• Estate Planning: Package family-owned business shares or real estate into a tracker certificate.
• Cross-Border Investing: Use an SPV to hold US investments, and link it to a Swiss-issued AMC for global family members.
• Club Deals: Pool capital from related family offices into an SPV and issue units of a structured certificate to participants.

SPVs & Securitisation 

Securitisation via Swiss-issued certificates, combined with globally domiciled SPVs, offers family offices a powerful structure for managing complex investments. This framework brings together control, flexibility, and transparency, all while aligning with the operational needs of modern family wealth.

This model of securitisation for family offices empowers wealth managers to efficiently structure cross-border investments with institutional-grade precision.

For those evaluating how to implement such structures effectively, working with experienced partners in structuring and distribution is key. FundFront supports family offices in designing and issuing SPV-linked structured products, simplifying access to sophisticated investment strategies. 

Contact us on our email hello@fundfront.com or complete the contact form on our website. 

Other articles that may be of interest:

• How to Set Up a Hedge Fund in Cayman Islands
• 5 Key Benefits of Cayman Islands Private Trust Companies (PTCs) for Wealth Planning
• Cayman Islands Funds vs Luxembourg Funds

Disclaimer

FundFront provides operational and technological solutions for family offices, fund structuring, securitisation and management. We do not provide legal, tax or financial advice. We recommend that you consult with professional legal or financial advisors to ensure compliance and appropriateness for your specific situation.