Scaramucci leads bidding for Silicon Valley Financial institution VC arm: Report

Home » Scaramucci leads bidding for Silicon Valley Financial institution VC arm: Report
Scaramucci leads bidding for Silicon Valley Financial institution VC arm: Report

SVB Monetary Group, the previous mum or dad firm of Silicon Valley Financial institution is getting nearer to a deal that may see the establishment promote its enterprise capital arm SVB Capital.

Based on a Sept. 15 report from the Wall Road Journal — citing sources aware of the matter — Anthony Scaramucci’s SkyBridge Capital and Atlas Service provider Capital are jostling with the San Francisco agency Vector Capital within the closing levels of the bidding course of.

Sources claimed that SVB’s enterprise capital arm might be bought off for between $250 million and $500 million, however warned {that a} closing sale isn’t assured and that it might nonetheless require the evaluate of the creditor’s committee.

A choice on the sale is predicted to come back earlier than the court docket within the coming weeks.

Notably, SVB Capital was not included within the SVB’s overarching Chapter 11 chapter proceedings, and the financial institution reportedly mentioned that the outfit would proceed its “extraordinary course operation” of enterprise regardless of being put up on the market.

SVB Capital is an funding capital platform that conducts a variety of investments, together with the backing of different main Silicon Valley enterprise capital corporations comparable to Sequoia and Andreessen Horowitz (a16z).

As of December 2022, SVB Capital held $9.5 billion in belongings throughout 20 funds and 760 corporations, together with blockchain analytics service Chainalysis.

SVB Capital holdings overview as of December 2022. Supply: SVB Capital

In the meantime, Scarammuci’s SkyBridge Capital manages some $1.8 billion in belongings. Of that determine, roughly $580 million is held in cryptocurrencies and different digital asset-related investments.

Cointelegraph contacted SkyBridge Capital and SVB Capital for remark however didn’t obtain a reply by the point of publication.

Associated: Senators slam financial institution execs for blaming collapses on crypto, pocketing tens of millions

Earlier this 12 months, Silicon Valley Financial institution was shut down by California’s monetary watchdog on March 10 and filed for chapter on March 17. Previous to its collapse, Silicon Valley Financial institution was one of many few establishments that supplied banking companies to crypto corporations in the USA.

SVB crumbled alongside different crypto and tech-friendly banks, together with Signature Financial institution and Silvergate Financial institution, in what was later seen because the worst banking disaster since 2008.

Earlier this 12 months, the investment-banking arm of SVB Monetary, referred to as SVB Securities, bought itself to its founder Jeff Leerink and different senior managers for $100 million.

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