Scaramucci leads bidding for Silicon Valley Bank VC arm: Report


SVB Financial Group, the previous guardian firm of Silicon Valley Bank is getting nearer to a deal that may see the establishment promote its enterprise capital arm SVB Capital.

According to a Sept. 15 report from the Wall Street Journal — citing sources accustomed to the matter — Anthony Scaramucci’s SkyBridge Capital and Atlas Merchant Capital are jostling with the San Francisco agency Vector Capital within the last 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} last sale will not be assured and that it will nonetheless require the assessment of the creditor’s committee.

A call on the sale is predicted to return earlier than the courtroom 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 “ordinary 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. Source: SVB Capital

Meanwhile, 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.

Related: Senators slam financial institution execs for blaming collapses on crypto, pocketing hundreds of thousands

Earlier this 12 months, Silicon Valley Bank was shut down by California’s monetary watchdog on March 10 and filed for chapter on March 17. Prior to its collapse, Silicon Valley Bank was one of many few establishments that provided banking providers to crypto corporations within the United States.

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

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

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