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December 18, 2023
1 min read

Silicon Valley Bank’s vintage venture arm sale hits a hiccup.

  • The sale process of SVB Financial’s venture capital arm, formerly part of Silicon Valley Bank, has faltered.
  • Creditors including Pimco and Davidson Kempner may potentially take over the roughly $10 billion venture capital business.

SVB Financial, the former parent company of Silicon Valley Bank, filed for bankruptcy in March after federal regulators took over the bank. As part of their proceedings, a process was initiated to sell off the venture capital arm of the business. However, efforts to finalize the sale have hit a roadblock and might not materialize.

Two leading contenders previously emerged in the race to acquire SVB Capital. The first was a combined effort from SkyBridge Capital and Atlas Merchant Capital, both headed by Anthony Scaramucci. The second was Vector Capital, a private equity firm based in San Francisco. These details were reported by The Wall Street Journal in September.

Despite these early lead players, the sale process appears to have run into difficulties and not progressed as planned. Creditors, including notable names such as Pimco and Davidson Kempner, are reportedly preparing for a potential takeover of SVB Capital, given the circumstances. The venture capital business under question is reported to be worth approximately $10 billion.

This development follows the bankruptcy filing of SVB Financial’s parent company earlier this year, when federal regulators took control of Silicon Valley Bank due to financial distress. The proposed sale of its venture capital arm was part of the bailout arrangement, aimed at restoring financial stability to the company.

The journey ahead for SVB Capital remains uncertain, with a potential creditors’ takeover looming. The move could reshape the venture capital landscape, depending on the outcome and subsequent business decisions.

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