HomeUSASVB Financial Group Sells SVB Capital to Pinegrove Capital Partners

SVB Financial Group Sells SVB Capital to Pinegrove Capital Partners

SVB Financial Group (Pink Sheets: SIVBQ) entered into a definitive agreement under which a newly created entity affiliated with Pinegrove Capital Partners and backed by permanent capital from Brookfield Asset Management and Sequoia Heritage, will acquire the company’s investment platform business, SVB Capital.

Under the terms of the agreement, SVB Capital would be acquired for a combination of cash and other economic consideration.

Pinegrove is a capital solutions partner for the venture capital ecosystem which provides customized and scalable secondary liquidity solutions for general partners and limited partners with a focus on investing in mid-to-late-stage private technology companies.

As part of this differentiated partnership, Pinegrove and SVB Capital will operate independently, each led by their existing management teams, with the common long-term financial backing of Brookfield and Sequoia Heritage and an aligned focus on providing flexible and innovative capital solutions to their trusted clients.

The agreement is subject to Bankruptcy Court and regulatory approval, as well as other customary closing conditions. On May 2, 2024, SVB Financial Group filed a motion seeking the Court’s authorization to approve buyer protections for the Pinegrove affiliate and consummate a sale of the SVB Capital business. SVB Financial Group intends to seek approval of the buyer protections at a hearing on May 16, 2024, and has requested that the Bankruptcy Court schedule a hearing to approve the sale of SVB Capital on June 5, 2024.

The transaction is supported by SVB Financial Group and key creditor groups, including the Official Committee of Unsecured Creditors, the Ad Hoc Group of Senior Noteholders and the Ad Hoc Cross-Holder Group.

VCWire

03/05/2024