SVB Financial Group, formerly the parent company of Silicon Valley Bank, is edging closer to finalizing a deal that would involve the sale of its venture capital division, SVB Capital.
Recent reports from The Wall Street Journal on September 15, citing insider sources, indicate that Anthony Scaramucci’s SkyBridge Capital and Atlas Merchant Capital are in competition with San Francisco’s Vector Capital in the latter stages of the bidding process.
While estimates suggest SVB Capital could fetch between $250 million and $500 million in the sale, it’s important to note that the transaction’s completion is not guaranteed and remains subject to the scrutiny of the creditor’s committee.
A decision regarding the sale is expected to be rendered in the upcoming weeks.
Remarkably, SVB Capital was not encompassed within SVB’s broader Chapter 11 bankruptcy proceedings.
The bank has affirmed that SVB Capital will continue its regular business operations despite being put on the market.
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SVB Capital is recognized for its investment capital activities, including backing prominent Silicon Valley venture capital firms like Sequoia and Andreessen Horowitz (a16z).
As of December 2022, SVB Capital held assets totaling $9.5 billion, spread across 20 funds and 760 companies, which encompassed blockchain analytics service Chainalysis.
In parallel, SkyBridge Capital, overseen by Anthony Scaramucci, manages approximately $1.8 billion in assets, with a significant portion, around $580 million, allocated to cryptocurrencies and other digital asset-related investments.
Cointelegraph reached out to both SkyBridge Capital and SVB Capital for comments but had not received responses as of the publication time.
Earlier this year, Silicon Valley Bank faced regulatory action from California’s financial watchdog, leading to its closure on March 10 and subsequent bankruptcy filing on March 17.
Before its collapse, Silicon Valley Bank was among the few institutions offering banking services to crypto companies in the United States.
Its downfall coincided with that of other crypto and tech-friendly banks, including Signature Bank and Silvergate Bank, marking one of the most significant banking crises since 2008.
Furthermore, earlier this year, SVB Financial’s investment-banking arm, SVB Securities, completed its sale to its founder, Jeff Leerink, and senior managers for a sum of $100 million, underscoring the ongoing changes and developments within the organization.
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