TLDR:
SVB Financial Group is selling its venture capital business, SVB Capital, to an entity affiliated with Pinegrove Capital Partners. The deal includes permanent capital from Brookfield and Sequoia Heritage and is pending bankruptcy court approval, with a hearing scheduled for June 5. SVB Capital manages $10 billion in investments for 750 limited partner investors and will continue to operate independently under new ownership.
- SVB Financial selling venture capital business SVB Capital to Pinegrove Capital Partners affiliate.
- Deal includes cash and other considerations, pending bankruptcy court approval.
SVB Financial has been fighting regulators’ seizure of $2 billion in cash and filed for bankruptcy last year after the collapse of Silicon Valley Bank. The agreement with Pinegrove and SVB Capital will allow the business to continue under new ownership with long-term financial backing.
Full Article:
SVB Financial Group announced the sale of its venture capital arm, SVB Capital, to an entity associated with Pinegrove Capital Partners. This acquisition will involve a mixture of cash and other economic considerations and is awaiting approval from a bankruptcy court, with a hearing scheduled for June 5.
SVB Capital currently manages around $10 billion in investments on behalf of approximately 750 limited partner investors, including public pensions. The new entity acquiring SVB Capital will operate independently, led by existing management teams, with financial backing from Brookfield and Sequoia Heritage.
SVB Financial has been in a legal battle against regulators who seized nearly $2 billion in cash from the bank. The sale of SVB Capital is seen as a way to maximize value for SVB Financial’s stakeholders and allow them to participate in future business upside potential.
The deal includes support from key creditor groups, regulatory approval is pending, and other standard closing conditions must be met. SVB Financial filed for bankruptcy after the collapse of Silicon Valley Bank last year, but SVB Securities and SVB Capital’s funds were exempt from the Chapter 11 filing.
