A special purpose private equity fund (SPPEF) also called a special purpose private equity investment fund,[1] is a legal entity, frequently a Limited Liability Company incorporated in the US state of Delaware, but it can be any type of corporation or partnership entity and of any domicile, including sovereign states.
[2] It is formed so as to enable a group of investors, usually individuals, to invest collectively in another entity.
It is mostly used to enable private investors in early-stage technology companies to pool their resources and invest on the same terms that a traditional venture capital fund would.
For angel investors investing in technology companies that are involved in sectors that they have been successful in offers an opportunity to make informed bets and to leverage their networks and experience as advisers so as to leverage their intellectual capital as well as their financial capital.
However, there is often a good process for investment presentation, due diligence and placement but not for ongoing management.