Operations Continuing at SVB Capital and SVB
Securities
SANTA
CLARA, Calif., March 13,
2023 /PRNewswire/ -- SVB Financial Group
("SVBFG") (NASDAQ: SIVB) announced today that its Board of
Directors has appointed a restructuring committee consisting of
five independent directors to explore strategic alternatives for
the holding company and its SVB Capital and SVB Securities
businesses, as well as its other assets and investments. Both of
these businesses are separate divisions of SVBFG and not part of
Silicon Valley Bank, which is undergoing resolution under the
jurisdiction of the Federal Deposit Insurance Corporation ("FDIC")
and Federal Reserve.
- SVB Capital is a venture capital and private credit fund
platform with deep roots in the innovation economy. The platform
will continue to operate and deliver high-quality services to
clients through its existing management team, which has a proven
track record of success. SVB Capital funds are separate legal
entities, distinct from Silicon Valley Bank. Its investor
commitments and portfolio investments are owned by the SVB Capital
funds and are not subject to the resolution process underway for
Silicon Valley Bank. SVB Capital maintains underwriting and
investment committee processes that are separate from Silicon
Valley Bank.
- SVB Securities is a leading investment bank serving
the innovation economy. It continues to offer clients its
differentiated sector knowledge, deep expertise, and an extensive
suite of capital market and advisory solutions. The resolution
proceedings for Silicon Valley Bank will not directly impact the
broker-dealer's business operations, which continue uninterrupted
under the management of SVB Securities leadership team. Since its
acquisition in January 2019 by SVBFG,
SVB Securities has maintained its financial and operational
independence and has operated largely autonomously as a standalone
subsidiary. The firm has a strong client base and solid financial
position, with a healthy balance sheet, significant excess net
regulatory capital, and no outstanding debt.
The members of the holding company's restructuring committee are
Eric Benhamou, Tom King, Kay
Matthews, Mary Miller and
Kate Mitchell. In addition to
exploring potential transactions for the SVB Capital and SVB
Securities businesses, the committee will explore all alternatives
for addressing the approximately $3
billion of funded debt held by the holding company, which is
recourse only to SVB Financial Group and is not guaranteed by the
subsidiaries. The holding company is being advised by Centerview
Partners LLC, Sullivan & Cromwell LLP, and Alvarez & Marsal
as financial, legal, and restructuring advisors, respectively, in
conjunction with the committee's activities.
About SVB Financial Group
Headquartered in Santa Clara,
California, SVB Financial Group (Nasdaq: SIVB) is the
holding company for SVB Capital and SVB Securities.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to known and unknown
risks and uncertainties, many of which may be beyond SVB Financial
Group's control. Forward-looking statements are statements that are
not historical facts and generally can be identified by the use of
such words as "becoming," "may," "will," "should," "could,"
"would," "predict," "potential," "continue," "anticipate,"
"believe," "estimate," "seek," "expect," "plan," "intend," the
negative of such words or comparable terminology. Although SVB
Financial Group believes that the expectations reflected in SVB
Financial Group's forward-looking statements are reasonable, SVB
Financial Group has based these expectations on its current beliefs
as well as its assumptions, and such expectations may not prove to
be correct. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside SVB Financial Group's control. Forward-looking
statements related to the offerings and SVB Financial Group's
actual results of operations and financial performance could differ
significantly from those expressed in or implied by SVB Financial
Group forward-looking statements. The forward-looking statements
included in this disclosure are made only as of the date of this
disclosure. SVB Financial Group does not intend, and undertakes no
obligation, to update these forward-looking statements.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/svb-financial-group-to-explore-strategic-alternatives-301769853.html
SOURCE SVB Financial Group