"SVB blasted a letter, seen by Fortune, to its limited partners via email Monday morning, saying it was "continuing to operate" following the closure of the bank and that its current management team "will continue to lead the company." "Each of our Funds operates as separate legal entities, distinct from Silicon Valley Bank," the email from Monday morning reads. "Our investor commitments and portfolio investments are owned by these funds, and as such, are not subject to the resolution process underway for Silicon Valley Bank.""
"On Monday, the bank's parent company said it was "exploring potential transactions" for SVB Capital, as well as the company's investment banking business, SVB Securities. Both entities, while sitting under the SVB brand, operated as separate divisions and were "not part of Silicon Valley Bank," according to the company. Meanwhile, SVB Capital, the venture firm, is trying to reassure its own investors (referred to as limited partners), telling them their exposure to the failed bank is limited and that their funds will continue to operate and make investments."
"One limited partner, whose investment team was briefed on the state of SVB Capital, says they were told that there are "many interested" potential acquirers of SVB Capital, including large financial services providers, asset managers, and sovereign wealth funds. The LP reported to Fortune that the SVB Capital team was optimistic they would be sold to a strategic buyer as a single entity, rather than be diced up."
"Other limited partners are displeased with the communication and feel entirely left in the dark. "They sent us this platitude email around today about how 'our funds are safe'-but, I mean, is that even true? There's so mu"
The FDIC took control of Silicon Valley Bank’s assets and financial operations, leaving SVB Capital’s future uncertain. The parent company said it is exploring potential transactions for SVB Capital and SVB Securities. SVB Capital and SVB Securities operate as separate divisions under the SVB brand and are not part of Silicon Valley Bank. SVB Capital told limited partners that it is continuing to operate after the bank’s closure and that its current management team will continue leading the company. Each fund operates as a separate legal entity, and investor commitments and portfolio investments are owned by those funds, not subject to the bank’s resolution process. Some limited partners were told there are many interested acquirers and that a sale as a single entity is possible, while others criticized the communication and felt uninformed.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]