SVB Financial to sell VC business SVB Capital

May 2 (Reuters) – Collapsed U.S. lender SVB Financial Group said on Thursday that an entity affiliated with Pinegrove Capital Partners will acquire its venture capital business, SVB Capital.

A newly-created entity, backed by permanent capital from Brookfield (BAM.TO), opens new tab and Sequoia Heritage, will buy SVB Capital for a combination of cash and other economic considerations, SVB Financial said. It did not disclose a financial value.

SVB Financial is seeking approval from a bankruptcy court and has requested a hearing on June 5.

SVB Capital manages about $10 billion in investments on behalf of about 750 limited partner investors, such as public pensions, that have contributed capital to the investment fund, according to court documents. SVB Financial continues to fight U.S. regulators’ seizure of nearly $2 billion in cash.

“We believe the agreement maximizes the value for the benefit of SVB Financial Group’s constituents, with a significant cash component as well as the ability to participate in the future upside potential of the business,” Bill Kosturos, chief restructuring officer of SVB Financial Group said.

Source: REUTER