SVB agrees to sell venture capital arm for $340 million

This concerns the fate of SVB's venture capital business, called SVB Capital, which still manages around $9.8 billion in assets for limited partners.SVB's bankrupt parent company has agreed to sell SVB Capital to a new entity backed by Brookfield and Sequoia Heritage, subject to bankruptcy court approval.

It's to be affiliated with Pinegrove Capital Partners, a firm formed in 2023 to focus on VC continuation vehicles and other venture liquidity solutions.SVB Capital views this deal as an opportunity to reorganize and restart, with one source expressing excitement about the flexibility of operating outside of a publicly traded, federally chartered bank .

It's expected to originate new deals, as evidenced by an earnout provision tied to future fundraising hauls. That likely means it will hire new staff, or perhaps rehire some folks who were laid off earlier this year when it appeared that SVB's creditors would hold onto SVB Capital and manage it out.SVB Capital is the bankrupt parent's last major operating unit, although it still holds a small research firm and a lot of net operating losses.Share on linkedin

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