SVB Financial Group to Sell SVB Capital Investment Platform Business

SVB Financial Group, the former parent company of Silicon Valley Bank, has made a significant move by entering into a definitive agreement to sell its investment platform business, SVB Capital. The buyer is a newly created entity affiliated with Pinegrove Capital Partners and backed by Brookfield Asset Management and Sequoia Heritage.

This agreement, subject to bankruptcy court approval and other closing conditions, is supported by SVB Financial Group and key creditor groups. Bill Kosturos, chief restructuring officer of SVB Financial Group, expressed optimism about the deal, highlighting SVB Capital’s reputation as a premier investment partner in the venture capital and technology sectors.

Aaron Gershenberg, founding partner of SVB Capital, emphasized the firm’s longstanding partnerships in venture capital and the potential for growth under the new ownership. Pinegrove and SVB Capital will operate independently, with existing management teams leading each entity.

Pinegrove’s CEO, Brian Laibow, expressed excitement about the partnership and the opportunity to enhance liquidity options in the venture capital ecosystem. SVB Capital currently manages $10 billion in investments for 750 limited partner investors, showcasing its significant presence in the market.

This development comes after SVB Financial Group filed for bankruptcy protection in March 2023, following the collapse of Silicon Valley Bank. The sale of SVB Capital is part of the company’s strategic evaluation of its assets and investments during the court-supervised process.

Overall, the agreement between SVB Financial Group and Pinegrove Capital Partners marks a new chapter for SVB Capital and sets the stage for continued success in the venture capital landscape.