Market Analysis

SVB Financial, the parent company of the now-closed Silicon Valley Bank, announced on Friday that it has reached a definitive agreement to sell its venture capital division, SVB Capital. The buyer is an entity backed by Brookfield Asset Management and Sequoia Heritage. While the financial specifics were not disclosed, SVB Financial indicated that the deal involves a mix of cash and other considerations, with a substantial cash component.

Under the agreement, SVB Capital will be acquired by an entity associated with Pinegrove Capital Partners, with both entities continuing to operate independently. Regulatory approval is pending for the transaction.

This move comes after SVB Financial filed for bankruptcy last year following the collapse of Silicon Valley Bank during a bank run, marking one of the largest bank failures in U.S. history. Following the bankruptcy, SVB Financial sold its banking division to First Citizens BancShares Inc, while its investment banking arm was acquired by members of its senior management team.

Earlier this year, SVB Financial had indicated the possibility of creditors taking control of its venture capital division after initial talks for a sale to a consortium fell through.

Paraphrasing text from "Investing" all rights reserved by the original author.