The Clearing House Real-Time Payments Tracker May 2024 Banner

Pinegrove Capital Partners-Affiliated Entity to Buy SVB Capital

SVB and Silicon Valley Bank sign

SVB Financial Group has entered into a definitive agreement to sell its investment platform business, SVB Capital.

The buyer is a newly created entity affiliated with Pinegrove Capital Partners and backed by Brookfield Asset Management and Sequoia Heritage, SVB Financial Group said in a Thursday (May 2) press release.

The agreement is subject to bankruptcy court approval, regulatory approval and other customary closing conditions, according to the release. The transaction is supported by SVB Financial Group and key creditor groups, per the release.

“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,” Bill Kosturos, chief restructuring officer of SVB Financial Group, said in the release.

Aaron Gershenberg, founding partner and member of the operating committee of SVB Capital, said in the release that the firm has cultivated partnerships in venture capital over a quarter-century.

“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,” Gershenberg said.

Pinegrove and SVB Capital will operate independently, and each will be led by its existing management team, according to the release.

“Pinegrove is honored to partner with Aaron and the SVB Capital team,” Brian Laibow, CEO and founding partner of Pinegrove, said in the release. “We are thrilled to work collaboratively on our collective mission of enhancing liquidity options in the venture capital ecosystem.”

SVB Capital currently manages $10 billion in investments for 750 limited partner investors, Reuters reported Thursday.

SVB Financial — the former parent company of Silicon Valley Bank — filed for bankruptcy protection in March 2023 after the collapse of that bank. SVB Securities and SVB Capital’s funds and general partner entities were not included in the filing.

“SVB Financial Group intends to use the court-supervised process to evaluate strategic alternatives for SVB Capital, SVB Securities and the company’s other assets and investments,” the firm said at the time in a press release.