Why Are Syndicate Vehicles So Important? #venturecapital #shorts

So I wanted to dive a bit into the history of syndicate vehicles and why I think they're so important. They have quite a tumultuous past. So according to The Accounting Trick Behind 30 Years of Scandal by Christopher Matthews, the genesis of SPVs was actually as the demand for high-yield debt waned in the late 1980s, Michael Milken and his firm, Drexel Burnham Lambert packaged this debt in a special purpose entity, or SPE, that would allow the ratings agency to rank them as an investment-grade rating, which would allow insurance companies and pension funds to invest in them. If this sounds familiar, you might have watched The Big Short.