SVB Financial Group, the former owner of Silicon Valley Bank, has announced a deal to sell its venture capital unit to a new affiliate of Pinegrove Capital Partners. The transaction is valued at up to $572 million and involves a mix of cash and other economic considerations. It is pending approval from the bankruptcy court and regulators.
The venture capital unit was previously considered for sale by SVB Financial with advisors valuing it at up to $572 million, according to court documents filed in January. In earlier this year, SVB Financial reached an agreement with Brookfield Asset Management and Sequoia Heritage to form a new company holding assets like SVB Capital and potentially valuable tax attributes worth billions of dollars. This move marks a strategic shuffle of assets for SVB Financial in the aftermath of its collapse.
The deal underscores the ongoing restructuring efforts at SVB Financial aimed at maximizing the value of its remaining assets. With the support of Brookfield Asset Management and Sequoia Heritage, the newly created affiliate of Pinegrove Capital Partners is set to take over SVB Capital, a valuable asset in the aftermath of Silicon Valley Bank’s troubles last year. If approved by regulatory authorities, this transaction will be significant step forward in the strategic realignment of SVB Financial’s assets.
