An Expense Reserve is a separate account, typically established by the SPV Organizer in the Organizer’s name, used to collect funds from investors specifically for covering the SPV’s expenses. Investors are required to deposit their investment funds into the SPV’s main bank account and then contribute additional funds into the expense reserve account. This approach is often used by entities with known upcoming expenses, such as large legal fees. Alternatively, some SPVs collect all funds into the main account and deduct a portion for expenses. The primary benefit of an expense reserve is the clear segregation of investment funds and expense funds, facilitating more organized financial records. However, this structure may result in more complex tax filings. Most SPV organizers do not utilize an expense reserve.