Bank / Credit Union

SVB to sell investment banking business to management team led by CEO

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June 19, 2023

Silicon Valley Bank has entered into an agreement to sell its investment banking business, SVB Securities, to a management team group led by CEO Jeff Leerink and backed by funds managed by The Baupost Group LLC. It will be rebranded as Leering Partners, according to a press release.

SVB made headlines when it collapsed in March due to depositors pulling out $42 billion from the bank, which left SBV with a negative cash balance of $958 million. Following, this the U.S. government seized control of the bank to secure its deposits.

This latest move is part of a strategic alternatives process led by the board's restructuring committee. MoffettNathanson LLC, a sell-side research business, will not be part of the transaction and will be kept by SVB Financial Group.

"This transaction is a significant milestone in SVB Financial Group's strategic alternatives process," Bill Kosturos, chief restructuring officer, SVB, said in the release. "The Restructuring Committee and its advisors conducted a disciplined and independent process intended to maximize the value of the business for SVB Financial Group stakeholders. We are confident that the transaction led by the investment bank's current management team will preserve and enhance the value of the business."