Pinegrove Affiliate to Acquire SVB
Capital
SVB Capital and Pinegrove to Operate
Independently with Common Sponsorship and Shared Mission to Serve
the Venture Ecosystem
SAN
FRANCISCO, May 2, 2024 /PRNewswire/ -- SVB Financial
Group (Pink Sheets: SIVBQ) today announced that it has entered into
a definitive agreement under which a newly created entity
affiliated with Pinegrove Capital Partners ("Pinegrove") and backed
by permanent capital from Brookfield Asset Management
("Brookfield") and Sequoia Heritage, will acquire the Company's
investment platform business, SVB Capital. Under the terms of the
agreement, SVB Capital would be acquired for a combination of cash
and other economic consideration.
Pinegrove is a capital solutions partner for the venture capital
ecosystem. Pinegrove provides customized and scalable secondary
liquidity solutions for general partners and limited partners with
a focus on investing in leading mid-to-late-stage private
technology companies.
As part of this differentiated partnership, Pinegrove and SVB
Capital will operate independently, each led by their existing
management teams, with the common long-term financial backing of
Brookfield and Sequoia Heritage and an aligned focus on providing
flexible and innovative capital solutions to their trusted
clients.
"The SVB Capital business has built an exceptional reputation as
the premier investment partner to top venture capital firms and
technology companies, and we are pleased to have reached an
agreement that will position the business to thrive over the
long-term and has the support of SVB Financial Group's major
creditor groups," said Bill
Kosturos, Chief Restructuring Officer of SVB Financial
Group. "We believe the agreement maximizes the value for the
benefit of SVB Financial Group's constituents, with a significant
cash component as well as the ability to participate in the future
upside potential of the business. In addition, the transaction is a
strong outcome for the team at SVB Capital, its limited partners
and other key stakeholders."
"Over the last quarter-century, our firm has thrived on the deep
trust we've cultivated with the most sought-after general
partnerships in venture capital. In addition, we have consistently
aligned our interests with those of our limited partners. Those
foundational principles will guide us into the future. Leveraging
SVB Capital's extensive history and track record, our partnership
with Pinegrove will expand our multi-strategy platform to directly
meet the unique needs of the venture capital and limited partner
communities," said Aaron
Gershenberg, Founding Partner and Member of the Operating
Committee, SVB Capital.
"Pinegrove is honored to partner with Aaron and the SVB Capital
team. We are thrilled to work collaboratively on our collective
mission of enhancing liquidity options in the venture capital
ecosystem," said Brian Laibow, CEO
and Founding Partner of Pinegrove.
Transaction Details
The agreement is subject to Bankruptcy Court and regulatory
approval, as well as other customary closing conditions. On
May 2, 2024, SVB Financial Group
filed a motion seeking the Court's authorization to approve buyer
protections for the Pinegrove affiliate and consummate a sale of
the SVB Capital business. SVB Financial Group intends to seek
approval of the buyer protections at a hearing on May 16, 2024, and has requested that the
Bankruptcy Court schedule a hearing to approve the sale of SVB
Capital on June 5, 2024.
The transaction is supported by SVB Financial Group and key
creditor groups, including the Official Committee of Unsecured
Creditors, the Ad Hoc Group of Senior Noteholders and the Ad Hoc
Cross-Holder Group.
Court filings and other information related to the SVB Financial
Group's Chapter 11 proceeding are available on a website
administrated by the Company's claims agent, Kroll, at
https://restructuring.ra.kroll.com/svbfg or by emailing
SVBFGInfo@ra.kroll.com.
Advisors
Centerview Partners LLC is serving as financial advisor,
Sullivan & Cromwell LLP is serving as legal counsel and Alvarez
& Marsal is serving as the restructuring advisor to SVB
Financial Group as debtor-in-possession. Paul, Weiss, Rifkind,
Wharton & Garrison LLP is serving as legal counsel to
Pinegrove.
About SVB Financial Group
SVB Financial Group (Pink Sheets: SIVBQ) is the holding company
for various financial services companies, including SVB
Capital.
About SVB Capital
Founded in 1999 as a division of SVB Financial Group, SVB
Capital is a multi-strategy investment platform targeting the
Innovation Economy with approximately $10B of assets under management across venture
capital fund of funds, direct funds, and private credit funds.
Uniquely positioned to access highly sought-after opportunities in
start-up companies and venture capital funds, SVB Capital invests
in fund managers and private technology and life science companies
throughout the innovation economy around the world.
About Pinegrove
Pinegrove Capital Partners is a capital solutions partner that
provides customized and scalable secondary liquidity solutions for
the venture and growth ecosystem, focusing on investing into
leading mid-to-late-stage private technology companies. Pinegrove
is backed with $1 billion for its
strategy inclusive of $500 million
from its sponsors, Sequoia Heritage and Brookfield Asset
Management. For more information, please visit
www.pinegrovecp.com.
About Sequoia Heritage
Sequoia Heritage is a private investment partnership dedicated
to compounding long term capital.
About Brookfield
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a
leading global alternative asset manager with over $900 billion of assets under management across
renewable power and transition, infrastructure, private equity,
real estate, and credit. We invest client capital for the long-term
with a focus on real assets and essential service businesses that
form the backbone of the global economy. We offer a range of
alternative investment products to investors around the world —
including public and private pension plans, endowments and
foundations, sovereign wealth funds, financial institutions,
insurance companies and private wealth investors. We draw on
Brookfield's heritage as an owner and operator to invest for value
and generate strong returns for our clients, across economic
cycles.
Contacts
For SVB Financial Group:
Media Contact
Joele
Frank, Wilkinson Brimmer Katcher
Michael Freitag / Eduardo Rovira
212-355-4449
svbmediainquiry@joelefrank.com
Investor Contact
SVB Capital
Christie Ma
cma@svbcapital.com
For Pinegrove:
Media Contact
FGS Global
Monique Sidhom / Suzanne Byowitz
Pinegrove@FGSGlobal.com
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SOURCE SVB Financial Group