SVB Financial Group has announced a definitive agreement where a newly formed entity affiliated with Pinegrove Capital Partners, supported by permanent capital from Brookfield Asset Management and Sequoia Heritage, will acquire SVB Capital, the investment platform business of the company. This acquisition will involve a mix of cash and other forms of economic consideration.
Pinegrove specializes in capital solutions for the venture capital ecosystem, offering tailored liquidity solutions for both general and limited partners, particularly focusing on mid-to-late-stage private technology firms. The agreement emphasizes that Pinegrove and SVB Capital will continue to function independently, each under their existing management teams. They will benefit from the long-term financial backing of Brookfield and Sequoia Heritage, focusing on providing adaptable and innovative capital solutions to their clientele.
The transaction has garnered support from SVB Financial Group and key creditor groups involved in the company's Chapter 11 proceedings, and is contingent upon approval from the Bankruptcy Court and regulatory authorities, along with other customary closing conditions. SVB Financial Group aims to secure approval for the transaction and buyer protections by May 16, 2024, with a proposed hearing for the sale scheduled for June 5, 2024.
Read the full press release here.
