SVB Financial Group (SVBFG), the parent company of now collapsed Silicon Valley Bank (SVB), is exploring strategic alternative options for the holding company and its venture capital and investment bank arms.
As part of the move, the board of directors of the firm has appointed a restructuring committee comprising five independent directors to consider the options.
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The committee will also look into the possible alternative choices for the company’s other assets and investments.
SVBFG’s venture capital and private credit fund platform operates under the brand name SVB Capital, while SVB Securities is the firm’s investment banking business.
Both these divisions function separately from SVB, which was seized by the US Federal Deposit Insurance Corporation (FDIC) last week.
They will continue to run and serve its clients under its existing management teams, said SVBFG.
In a statement, SVBFG said: “In addition to exploring potential transactions for the SVB Capital and SVB Securities businesses, the committee will explore all alternatives for addressing the approximately $3bn of funded debt held by the holding company, which is recourse only to SVB Financial Group and is not guaranteed by the subsidiaries.”
The firm has hired Centerview Partners, Sullivan & Cromwell and Alvarez & Marsal as financial, legal, and restructuring advisors, respectively.
The latest development also comes shortly after a Bloomberg report that stated that the management of SVB Securities was looking to buy the company back from its parent firm in a bid to deal with the collapse of SVB.
