Scaramucci Takes the Lead in Bid for Silicon Valley Bank’s VC Arm: New Developments
SVB Financial Group, formerly associated with Silicon Valley Bank, is making significant strides towards a potentially transformative deal involving the sale of its venture capital subsidiary, SVB Capital.
According to a report dated September 15 by the Wall Street Journal, which draws information from reliable sources, Anthony Scaramucci’s SkyBridge Capital and Atlas Merchant Capital are currently the frontrunners in the final stages of bidding. They face stiff competition from Vector Capital, a prominent San Francisco-based firm.
Sources familiar with the situation suggest that SVB’s venture capital branch could fetch a price ranging between $250 million and $500 million. However, it is essential to note that the sale’s conclusion remains uncertain, as it hinges on the creditor’s committee’s approval.
A verdict on the sale’s fate is anticipated in the following weeks through a court decision.
SVB Financial Group Nears Deal to Sell SVB Capital: Scaramucci’s SkyBridge Capital Leads Bidding Race
It is noteworthy that SVB Capital has remained distinct from SVB’s overarching Chapter 11 bankruptcy proceedings. The bank has clarified that SVB Capital will continue its regular operations despite being listed for sale.
SVB Capital serves as an investment capital platform, engaging in diverse investment activities, including backing major Silicon Valley venture capital firms like Sequoia and Andreessen Horowitz (a16z).
As of December 2022, SVB Capital boasted an impressive portfolio valued at $9.5 billion, spanning across 20 funds and 760 companies, which includes the blockchain analytics service, Chainalysis.
On the other hand, Scaramucci’s SkyBridge Capital manages assets totaling around $1.8 billion. Of this amount, approximately $580 million is invested in cryptocurrencies and other digital assets.
Cointelegraph reached out to both SkyBridge Capital and SVB Capital for comments, but as of the time of publication, no response had been received.
Silicon Valley Bank’s Venture Capital Unit SVB Capital in High-Stakes Sale: Latest Developments
In a related context, earlier this year, Silicon Valley Bank faced regulatory action from California’s financial authorities, leading to its closure on March 10 and subsequent bankruptcy filing on March 17. Prior to its demise, the bank had been one of the few institutions offering banking services to cryptocurrency firms in the United States.
The bank’s downfall paralleled the challenges faced by other crypto and tech-friendly banks, including Signature Bank and Silvergate Bank, marking it as the most significant banking crisis since 2008.
Further adding to the developments this year, the investment-banking division of SVB Financial, known as SVB Securities, underwent a noteworthy transaction, with its founder Jeff Leerink and other senior managers purchasing the arm for $100 million.
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