Could I have a variable interest in a VIE if I don’t have a direct interest in the VIE, but I have an arrangement with some of the other variable interest holders?
Indirect variable interest
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Yes, you could potentially have an implicit variable interest through an arrangement outside the legal entity. You would need to analyze the arrangements you have with related parties, especially if a related party has an explicit variable interest in the legal entity. You would also need to analyze guarantee arrangements for implicit variable interests. It is best to obtain a legal entity structure as a starting point to understand all the relationships as it relates to the VIE.