TLDR:

• SVB Financial Group is set to sell its venture capital unit to a Pinegrove Capital Partners affiliate.
• The buyer is backed by Brookfield Asset Management and Sequoia Heritage.

SVB Financial Group, the former parent company of Silicon Valley Bank, has announced a deal to offload its venture capital unit to a Pinegrove Capital Partners affiliate with backing from Brookfield Asset Management and Sequoia Heritage. The transaction involves a mix of cash and other considerations and is pending bankruptcy court and regulatory approval.

The venture capital unit, known as SVB Capital, is one of the key assets remaining after Silicon Valley Bank’s collapse. The unit was previously valued at up to $572 million by advisers. Earlier this year, SVB Financial and senior bondholders reached a deal to establish a new company holding assets like SVB Capital and potentially valuable tax attributes worth billions of dollars.

This move marks a significant development in the restructuring of SVB Financial post-collapse, with potential implications for the broader financial landscape.