SVB Financial Group, the former parent company of Silicon Valley Bank, is in the final stages of a deal to sell its venture capital arm, SVB Capital, according to a report from the Wall Street Journal. The leading bidders for the venture capital arm are Anthony Scaramucci’s SkyBridge Capital, Atlas Merchant Capital, and Vector Capital. The sale is expected to fetch between $250 million and $500 million, although a final sale is not guaranteed and would still require the review of the creditor’s committee. A decision on the sale is expected to be made in the coming weeks.
Despite SVB Financial Group filing for Chapter 11 bankruptcy earlier this year, SVB Capital was not included in the bankruptcy proceedings and will continue its normal operations, even if it is sold. SVB Capital is an investment capital platform that backs major Silicon Valley venture capital firms such as Sequoia and Andreessen Horowitz. As of December 2022, SVB Capital held $9.5 billion in assets across 20 funds and 760 companies, including blockchain analytics service Chainalysis.
SkyBridge Capital, one of the leading bidders for SVB Capital, manages a total of $1.8 billion in assets, with approximately $580 million held in cryptocurrencies and other digital asset-related investments. Cointelegraph reached out to both SkyBridge Capital and SVB Capital for comments but did not receive a response at the time of publication.
Earlier this year, Silicon Valley Bank, which was one of the few institutions in the United States offering banking services to crypto companies, was shut down by California’s financial watchdog and filed for bankruptcy. The collapse of Silicon Valley Bank, along with Signature Bank and Silvergate Bank, was considered the worst banking crisis since 2008.
In addition to the potential sale of SVB Capital, SVB Financial’s investment-banking arm, SVB Securities, was sold earlier this year for $100 million to founder Jeff Leerink and other senior managers.
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