Orphan Company

Heard in 3 episodes across 3 shows since Jul 2026

An orphan company is a special purpose vehicle (SPV) whose shares are held by a trust (often a charitable trust) rather than by the originator or sponsor of a transaction. This structure is widely used in structured finance, securitization, and asset leasing to ensure bankruptcy remoteness and prevent the SPV's assets from being consolidated into the sponsor's balance sheet. By separating legal ownership from economic interest, orphan companies protect investors and ring-fence financial risks.