Financial Group SVB Is Getting Close to Selling SVB Capital for Up to $500 Million
Surprisingly, the Chapter 11 bankruptcy procedures for SVB did not include SVB Capital.
Former Silicon Valley Bank parent firm SVB Financial Group is nearing completion of an agreement to sell its venture capital section, SVB Capital.
According to an article published by The Wall Street Journal on September 15 (citing anonymous sources), the three remaining bidders are San Francisco’s Vector Capital, Anthony Scaramucci’s SkyBridge Capital, and Scaramucci’s Atlas Merchant Capital.
Although the sale of SVB Capital is expected to generate between $250 million and $500 million, closing is still contingent upon approval from the creditor’s committee.
The transaction will likely be decided upon in the following weeks. Surprisingly, SVB Capital’s bankruptcy was handled separately from the rest of SVB’s Chapter 11 filings.
The bank has assured the public that despite being placed up for sale, SVB Capital would maintain its current business activities.
SVB Capital is well-known in the investment capital industry for its many contributions, including those to successful Silicon Valley VCs like Sequoia and Andreessen Horowitz (a16z).
Chainalysis, a blockchain analytics firm, was included among the 760 businesses and $9.5 billion in assets controlled by SVB Capital as of December 2022.
Anthony Scaramucci presides over SkyBridge Capital, which oversees around $1.8 billion; roughly $580 million is invested in cryptocurrencies and other digital asset-related ventures.
Neither SkyBridge Capital nor SVB Capital responded to Cointelegraph’s requests for comment before publication.
The California Department of Financial Institutions took action against Silicon Valley Bank early, culminating to the bank’s closure on March 10 and subsequent bankruptcy filing on March 17.
To a limited extent, Silicon Valley Bank served crypto firms in the United States until its demise. One of the most serious financial crises since 2008, its demise coincided with that of other crypto and tech-friendly institutions including Signature Bank and Silvergate Bank.
In order to demonstrate the continual changes and improvements inside the company, SVB Financial’s investment-banking arm, SVB Securities, sold itself to its founder, Jeff Leerink, and top management for $100 million earlier this year.