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Scaramucci leads bidding for Silicon Valley Financial institution VC arm: Report

Scaramucci leads bidding for Silicon Valley Financial institution VC arm: Report


SVB Monetary Group, the previous guardian firm of Silicon Valley Financial institution is getting nearer to a deal that may see the establishment promote its enterprise capital arm SVB Capital.

In keeping with a Sept. 15 report from the Wall Avenue Journal — citing sources conversant in the matter — Anthony Scaramucci’s SkyBridge Capital and Atlas Service provider Capital are jostling with the San Francisco agency Vector Capital within the ultimate levels of the bidding course of.

Sources claimed that SVB’s enterprise capital arm might be bought off for between $250 million and $500 million, however warned {that a} ultimate sale shouldn’t be assured and that it will nonetheless require the evaluate of the creditor’s committee.

A call on the sale is anticipated to return earlier than the court docket within the coming weeks.

Notably, SVB Capital was not included within the SVB’s overarching Chapter 11 chapter proceedings, and the financial institution reportedly mentioned that the outfit would proceed its “strange course operation” of enterprise regardless of being put up on the market.

SVB Capital is an funding capital platform that conducts a variety of investments, together with the backing of different main Silicon Valley enterprise capital corporations akin to Sequoia and Andreessen Horowitz (a16z).

As of December 2022, SVB Capital held $9.5 billion in property throughout 20 funds and 760 firms, together with blockchain analytics service Chainalysis.

SVB Capital holdings overview as of December 2022. Supply: SVB Capital

In the meantime, Scarammuci’s SkyBridge Capital manages some $1.8 billion in property. Of that determine, roughly $580 million is held in cryptocurrencies and different digital asset-related investments.

Cointelegraph contacted SkyBridge Capital and SVB Capital for remark however didn’t obtain a reply by the point of publication.

Associated: Senators slam financial institution execs for blaming collapses on crypto, pocketing hundreds of thousands

Earlier this yr, Silicon Valley Financial institution was shut down by California’s monetary watchdog on March 10 and filed for chapter on March 17. Previous to its collapse, Silicon Valley Financial institution was one of many few establishments that provided banking providers to crypto firms in the US.

SVB crumbled alongside different crypto and tech-friendly banks, together with Signature Financial institution and Silvergate Financial institution, in what was later seen because the worst banking disaster since 2008.

Earlier this yr, the investment-banking arm of SVB Monetary, generally known as SVB Securities, bought itself to its founder Jeff Leerink and different senior managers for $100 million.

Journal: How one can defend your crypto in a unstable market — Bitcoin OGs and consultants weigh in