SVB Financial Looks to Sell Other Businesses

<p><strong><span class&equals;"legendSpanClass"><span class&equals;"xn-location">SANTA CLARA<&sol;span><&sol;span><&sol;strong> &&num;8212&semi; SVB Financial Group &lpar;&&num;8220&semi;SVBFG&&num;8221&semi;&rpar; announced  its Board of Directors has appointed a restructuring committee consisting of five independent directors to explore strategic alternatives for the holding company and its SVB Capital and SVB Securities businesses&comma; as well as its other assets and investments&period; Both of these businesses are separate divisions of SVBFG and not part of Silicon Valley Bank&comma; which collapsed Friday and taken over by the Federal Deposit Insurance Corporation &lpar;&&num;8220&semi;FDIC&&num;8221&semi;&rpar; and Federal Reserve&period;<&sol;p>&NewLine;<p>SVB Financial stock is essentially worthless and trading halted last Thursday&period;<&sol;p>&NewLine;<ul >&NewLine;<li><b>SVB Capital<&sol;b> is a venture capital and private credit fund platform with deep roots in the innovation economy&period; The platform will continue to operate and deliver high-quality services to clients through its existing management team&comma; which has a proven track record of success&period;  SVB Capital funds are separate legal entities&comma; distinct from Silicon Valley Bank&period; Its investor commitments and portfolio investments are owned by the SVB Capital funds and are not subject to the resolution process underway for Silicon Valley Bank&period; SVB Capital maintains underwriting and investment committee processes that are separate from Silicon Valley Bank&period; <br class&equals;"dnr" &sol;><br class&equals;"dnr" &sol;><&sol;li>&NewLine;<li><b>SVB Securities<&sol;b> is a leading investment bank serving the innovation economy&period; It continues to offer clients its differentiated sector knowledge&comma; deep expertise&comma; and an extensive suite of capital market and advisory solutions&period; The resolution proceedings for Silicon Valley Bank will not directly impact the broker-dealer&&num;8217&semi;s business operations&comma; which continue uninterrupted under the management of SVB Securities leadership team&period; Since its acquisition in <span class&equals;"xn-chron">January 2019<&sol;span> by SVBFG&comma; SVB Securities has maintained its financial and operational independence and has operated largely autonomously as a standalone subsidiary&period; The firm has a strong client base and solid financial position&comma; with a healthy balance sheet&comma; significant excess net regulatory capital&comma; and no outstanding debt&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<p>The members of the holding company&&num;8217&semi;s restructuring committee are <span class&equals;"xn-person">Eric Benhamou<&sol;span>&comma; <span class&equals;"xn-person">Tom King<&sol;span>&comma; <span class&equals;"xn-person">Kay Matthews<&sol;span>&comma; <span class&equals;"xn-person">Mary Miller<&sol;span> and <span class&equals;"xn-person">Kate Mitchell<&sol;span>&period; In addition to exploring potential transactions for the SVB Capital and SVB Securities businesses&comma; the committee will explore all alternatives for addressing the approximately <span class&equals;"xn-money">&dollar;3 billion<&sol;span> of funded debt held by the holding company&comma; which is recourse only to SVB Financial Group and is not guaranteed by the subsidiaries&period; The holding company is being advised by Centerview Partners LLC&comma; Sullivan &amp&semi; Cromwell LLP&comma; and Alvarez &amp&semi; Marsal as financial&comma; legal&comma; and restructuring advisors&comma; respectively&comma; in conjunction with the committee&&num;8217&semi;s activities&period;<&sol;p>&NewLine;