SVB Financial Group, the former parent company of Silicon Valley Bank, has announced the sale of its investment banking business, SVB Securities, to a group led by Jeff Leerink, the CEO and founder of SVB Securities. The transaction is expected to close pending court approval.
Facts
- SVB Financial Group is selling its investment banking business, SVB Securities, to a group led by Jeff Leerink, backed by funds managed by The Baupost Group.
- The transaction is set to close after a court approval hearing scheduled for 29 June.
- The bidding group will acquire SVB Securities for a combination of cash, repayment of an intercompany note, assumption of certain liabilities, and a 5% equity instrument in the buyer entity.
- Post-acquisition, SVB Securities will be rebranded as Leerink Partners.
- MoffettNathanson LLC, a sell-side research business owned by SVB Financial Group, will not be included in the transaction and will remain part of SVB Financial Group.
- SVB Financial Group is still evaluating strategic alternatives for SVB Capital and other assets and investments.
