special purpose entity definition
A Special Purpose Entity (SPE) is a legal entity usually a limited company of some type created to fulfill narrow, specific or temporary objectives.SPE's are typically used by companies to isolate the firm from financial risk.A company will transfer assets to the SPE for management or use the SPE to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk.SPEs are also commonly used in complex financings to separate different layers of equity infusion.PE's are typically used by companies to isolate the firm from financial risk. A company will transfer assets to the SPE for management or use the SPE to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk.